Journal ArticleDOI
Open-market stock repurchases as signals for earnings and risk changes
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TLDR
In this paper, an empirical examination of the nature of information conveyed by open-market stock repurchase announcements was conducted, and the findings weakly indicate that: (1) there are positive unexpected annual earnings in the repurchase announcement year and positive revisions of earnings forecasts by analysts around announcement dates.About:
This article is published in Journal of Accounting and Economics.The article was published on 1991-09-01. It has received 207 citations till now. The article focuses on the topics: Earnings.read more
Citations
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Journal ArticleDOI
Actual Share Reacquisitions in Open‐Market Repurchase Programs
TL;DR: In this article, the authors find that share repurchases are negatively related to prior stock price performance, suggesting that firms increase their purchasing depending on its degree of perceived undervaluation.
Journal ArticleDOI
Firm Valuation, Earnings Expectations, and the Exchange‐Rate Exposure Effect
Eli Bartov,Gordon M. Bodnar +1 more
TL;DR: In this article, the authors investigate the possibility that this failure is due to mispricing and find no significant correlation between the abnormal returns of their sample firms with international activities and changes in the dollar.
Journal ArticleDOI
The Information Content of Share Repurchase Programs
Gustavo Grullon,Roni Michaely +1 more
TL;DR: In this article, the authors find that announcements of open-market share repurchase programs are not followed by an increase in operating performance and that the systematic risk and the cost of capital of these firms decline after these events.
Journal ArticleDOI
The Information Content of Share Repurchase Programs
Gustavo Grullon,Roni Michaely +1 more
TL;DR: In this article, the authors find that repurchasing firms experience a significant reduction in systematic risk and cost of capital relative to non-repurchasing ones, and that the market reaction to share repurchase announcements is more positive among those firms that are more likely to overinvest.
Journal ArticleDOI
Employee stock options, EPS dilution, and stock repurchases
TL;DR: The authors investigate whether corporate executives' stock repurchase decisions are affected by their incentives to manage diluted earning per share (EPS) and find that executives increase the level of their firms' stock buybacks when: (1) the dilutive effect of outstanding employee stock options (ESOs) on diluted EPS increases, and (2) earnings are below the level required to achieve the desired rate of EPS growth.
References
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Journal ArticleDOI
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
Journal ArticleDOI
Corporate financing and investment decisions when firms have information that investors do not have
TL;DR: In this paper, a firm that must issue common stock to raise cash to undertake a valuable investment opportunity is considered, and an equilibrium model of the issue-invest decision is developed under these assumptions.
Journal ArticleDOI
Job Market Signaling
TL;DR: In this paper, the authors present a model in which signaling is implicitly defined and explains its usefulness, in which the employer is not sure of the productive capabilities of an individual at the time he/she hires him.
Journal ArticleDOI
An empirical evaluation of accounting income numbers
Ray Ball,Philip Brown +1 more
TL;DR: In this article, it is argued that income numbers cannot be defined substantively, that they lack "meaning" and are therefore of doubtful utility, and the argument stems in part from the patchwork development of account-based theories.
Journal ArticleDOI
Dividend Policy under Asymmetric Information
Merton H. Miller,Kevin Rock +1 more
TL;DR: In this article, the authors extend the standard finance model of the firm's dividend/investment/financing decisions by allowing the managers to know more than outside investors about the true state of the current earnings.
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