Actual share repurchases, timing and liquidity
Hamon, Jacques; Ginglinger, Edith (2007), Actual share repurchases, timing and liquidity, Journal of Banking and Finance, 31, 3, p. 915-938. http://dx.doi.org/doi:10.1016/j.jbankfin.2006.07.006
TypeArticle accepté pour publication ou publié
Journal nameJournal of Banking and Finance
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Abstract (EN)Research on the impact of open market share repurchases has been hindered by the lack of data available on actual share repurchases in many countries, including the US. Using a previously unused database containing detailed information on 36,848 repurchases made by 352 French firms, we show that corporate share repurchases have a significant adverse effect on liquidity as measured by bid–ask spread or depth. Our results also indicate that share repurchases largely reflect contrarian trading rather than managerial timing ability.
Subjects / KeywordsLiquidity; Timing; Repurchase; Microstructure; Corporate; Finance; Euronext Paris
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