Share repurchase regulations: do firms play by the rules?

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Date
2009
Description
Ce document est également paru dans la série des Working Papers de la Chaire Finance d'entreprise Dauphine - FBF, n° 2008-9
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http://halshs.archives-ouvertes.fr/halshs-00143974/en/
Indexation documentaire
Organisation et finances d'entreprise
Subject
Open market share repurchases; Insider trading; Regulations; Liquidity
Code JEL
K22; G18; G35
Nom de la revue
International Review of Law and Economics
Volume
29
Numéro
2
Date de publication
06-2009
Pages article
81-96
Nom de l'éditeur
Sevenoaks
URI
https://basepub.dauphine.fr/handle/123456789/1435
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Auteur
Hamon, Jacques
Ginglinger, Edith
Type
Article accepté pour publication ou publié
Résumé en anglais
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.