The effects of ownership and stock liquidity on the timing of repurchase transactions

Research output: Contribution to journalArticle

Abstract

We analyze detailed monthly data on U.S. open market stock repurchases (OMRs) that recently became available following stricter disclosure requirements. We find evidence that OMRs are timed to benefit non-selling shareholders. We present evidence that the profits to companies from timing repurchases are significantly related to ownership structure. Institutional ownership reduces companies' opportunities to repurchase stock at bargain prices. At low levels, insider ownership increases timing profits and at high levels it reduces them. Stock liquidity increases profits from timing OMRs. © 2012 Elsevier B.V.

Bibliographical metadata

Original languageEnglish
Pages (from-to)1023-1050
Number of pages27
JournalJournal of Corporate Finance
Volume18
Issue number5
DOIs
Publication statusPublished - Dec 2012
EventAmerican Law and Economics Conference - Stanford, USA
Event duration: 1 Jan 1824 → …