Can the Open Market React to Stock Repurchases Announcement Correctly?

Released on by Chun An Li
preview-18

  • Can the Open Market React to Stock Repurchases Announcement Correctly? Book Detail

  • Author : Chun An Li
  • Release Date : 2019
  • Publisher :
  • Genre :
  • Pages : 22
  • ISBN 13 :
  • File Size : 84,84 MB
DOWNLOAD BOOK

Can the Open Market React to Stock Repurchases Announcement Correctly? by Chun An Li PDF Summary

Book Description: In this study, we explore the market reaction to the announcement of stock repurchase plans, and the mutual influence between the actual fulfillment rate of stock repurchase plans and the degree of earnings management. From the perspective of earnings management behavior, this paper also analyzes the actual fulfillment rate, and discusses the information asymmetry, firms may carry out earnings management before stock repurchases, to mislead the investors into believing the prettified financial statements, to induce the investors to invest, and convey false signals to the market. The empirical results demonstrate that the cumulative abnormal return (CAR) resulting from true signals is higher than that resulting from false signals. Further, the phenomenon is more significant in the hi-tech industry than in traditional industries, and the firms with Purpose 3 (support the stock prices to maintain firm credit and shareholders' equity), a significant, positive abnormal return is observed on the day before and the day after the announcement day. In bullish periods, abnormal returns are not significant; in bearish periods, a significant, positive abnormal return is observed. These findings are applicable not only to the research samples but also to the samples when the extreme values are removed. Therefore, the empirical results are still robust.

Disclaimer: www.yourbookbest.com does not own Can the Open Market React to Stock Repurchases Announcement Correctly? books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

When a Buyback Isn't a Buyback

When a Buyback Isn't a Buyback

File Size : 51,51 MB
Total View : 2139 Views
DOWNLOAD

This paper examines how stock options have affected the decision to repurchase shares, the amount repurchased, and the market reaction to the repurchase announc

Payout Policy

Payout Policy

File Size : 98,98 MB
Total View : 8011 Views
DOWNLOAD

Dividend policy continues to be among the premier unsolved puzzles in finance. A number of theories have been advanced to explain dividend policy. This e-book b