Abstract
In this paper, we assess which firm-characteristics are associated with a firm's decision to announce a share repurchase programme in a cross-country framework. In the models, we incorporate firm-specific financial characteristics and measures of share price performance. We find that size, cash dividends, and ownership concentration consistently have a significant impact on share repurchase announcements in all three countries under study. However, the share price performance does not explain the decision to announce a share repurchase. The robustness of the proposed models is investigated across different dimensions of sample-matching methods and with a boot-strap technique. Finally, we construct a number of models with a robust predictive ability of a firm's likelihood to announce a share repurchase
Original language | English |
---|---|
Pages (from-to) | 65-76 |
Number of pages | 12 |
Journal | International Review of Financial Analysis |
Volume | 27 |
Early online date | 7 Jan 2013 |
DOIs | |
Publication status | Published - Apr 2013 |
Keywords
- share repurchases
- determinants
- information asymmetry
- logit model
- boot-strap technique