• xmlui.mirage2.page-structure.header.title
    • français
    • English
  • Help
  • Login
  • Language 
    • Français
    • English
View Item 
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesTypeThis CollectionBy Issue DateAuthorsTitlesType

My Account

LoginRegister

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors
Thumbnail - Request a copy

Do share repurchases impact analysts' activity and informativeness ?

de La Bruslerie, Hubert (2019), Do share repurchases impact analysts' activity and informativeness ?, in Cheng-Few Lee, Advances in Quantitative Analysis of Finance and Accounting, vol. 16, World Scientific : Singapore, p. 267-309. 10.6293/AQAFA.201812_16.0009

Type
Chapitre d'ouvrage
Date
2019
Book title
Advances in Quantitative Analysis of Finance and Accounting, vol. 16
Book author
Cheng-Few Lee
Publisher
World Scientific
Published in
Singapore
ISBN
1046-5847
Number of pages
390
Pages
267-309
Publication identifier
10.6293/AQAFA.201812_16.0009
Metadata
Show full item record
Author(s)
de La Bruslerie, Hubert
Dauphine Recherches en Management [DRM]
Abstract (EN)
Share repurchases announcement are discretionary transactions that stimulate analyst's activity. We use the multi-dimensional concept of informativeness to capture the integration of information in the stock prices. Our empirical test comprises American and European buybacks in the period 2000-2013. We refer to three independent measures of informativeness: the synchronicity measure introduced by Roll (1988), the Amihud (2002) illiquidity ratio, and the Llorente, Michaely, Saar, and Wang (2002) measure. We relate these three measures to analysts' activity in earning forecasting. We show that share repurchase decisions initiate a process, stimulate revisions by analysts, but do not systematically improve the informativeness of stock prices. An effective information process may develop if first it is pegged on negative cumulative abnormal return (CAR) values, and/or if the analysts are revising downward their earnings forecasts. We also highlight that informativeness improves asymmetrically depending on whether a change in the dividend policy occurs simultaneously.
Subjects / Keywords
Cumulative Abnormal Returns; Illiquidity Ratio; Synchronicity; Earning Forecasts Revisions
JEL
G12 - Asset Pricing; Trading Volume; Bond Interest Rates
D23 - Organizational Behavior; Transaction Costs; Property Rights
G35 - Payout Policy

Related items

Showing items related by title and author.

  • Thumbnail
    Share repurchase: Does it increase the informativeness of market prices? 
    de La Bruslerie, Hubert (2013-04) Communication / Conférence
  • Thumbnail
    Analysts' forecast revisions and informativeness of the acquirer's stock after M&A transactions 
    de La Bruslerie, Hubert (2015-06) Communication / Conférence
  • Thumbnail
    Do mergers and acquisitions improve informativeness about the acquirer’s stock? 
    de La Bruslerie, Hubert (2014) Document de travail / Working paper
  • Thumbnail
    Impact des rachats d’actions sur la liquidité et la rentabilité des actions 
    Brunel, Alexandre (2011-04) Thèse
  • Thumbnail
    Share repurchase regulations: do firms play by the rules? 
    Hamon, Jacques; Ginglinger, Edith (2005) Communication / Conférence
Dauphine PSL Bibliothèque logo
Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16
Phone: 01 44 05 40 94
Contact
Dauphine PSL logoEQUIS logoCreative Commons logo