Share repurchase regulations: do firms play by the rules?
Hamon, Jacques; Ginglinger, Edith (2009), Share repurchase regulations: do firms play by the rules?, International Review of Law and Economics, 29, 2, p. 81-96
TypeArticle accepté pour publication ou publié
External document linkhttp://halshs.archives-ouvertes.fr/halshs-00143974/en/
Journal nameInternational Review of Law and Economics
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Abstract (EN)Open market share repurchases are strictly regulated to prevent companies from profiting from insider information. We examine compliance with these rules in France, where the mandatory disclosure of share repurchases provides detailed information on repurchases actually undertaken. Using a database containing 36,848 repurchases made by 352 French firms over the period 2000-2002, we show that very few firms fully comply with the regulations for all their buybacks. Non-compliance has an adverse effect on liquidity only for the smallest and least liquid firms.
Subjects / KeywordsOpen market share repurchases; Insider trading; Regulations; Liquidity
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