AffiliationUniv Arizona, Eller Coll Management
MetadataShow full item record
PublisherCAMBRIDGE UNIV PRESS
CitationThe Timing and Source of Long-Run Returns Following Repurchases 2017, 52 (02):491 Journal of Financial and Quantitative Analysis
Rights© Michael G. Foster School of Business, University of Washington 2017
Collection InformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at firstname.lastname@example.org.
AbstractThis paper investigates the timing and source of anomalous positive long-run abnormal returns following repurchase authorizations. Returns between program authorization and completion announcements are indistinguishable from 0. Abnormal returns occur only after completion announcements. Long-run returns are largely attributable to announcement returns at subsequent authorizations and takeover attempts; that is, anomalous post-authorization returns are not persistent drifts but rather step functions. These findings have important implications for prior papers examining this most persistent and widespread anomaly. Further, our results serve to refocus the search for a rational explanation for the anomaly on subsequent repurchase announcements and takeover bids.
Note12 month embargo; Published online: 21 April 2017
VersionFinal published version