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Voluntary Repurchase Disclosures ...
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Final Accepted Manuscript
Affiliation
Eller College of Management, University of ArizonaIssue Date
2024-01-24
Metadata
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WileyCitation
Bargeron, L., Bonaimé, A., Docimo, W., Feng, M., & Thomas, S. (2024). Voluntary disclosures regarding open market repurchase programs. Contemporary Accounting Research, 41(2), 1151–1185. https://doi.org/10.1111/1911-3846.12937Journal
Contemporary Accounting ResearchRights
© 2024 Canadian Academic Accounting Association.Collection Information
This 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 repository@u.library.arizona.edu.Abstract
This paper studies voluntary disclosures that firms have suspended, resumed, or completed their open market repurchase programs. Voluntary disclosures of repurchase status updates are common and value-relevant. They also inform subsequent repurchase activities: voluntary disclosers are more likely to complete their repurchase programs and to initiate new repurchase programs than firms with undisclosed repurchase status changes. Moreover, firms that disclose repurchase suspensions experience larger returns to subsequent repurchase authorizations, consistent with a reward for establishing a reputation for transparency via voluntary bad news disclosure. Finally, exploiting a change in repurchase reporting requirements, we document that voluntary updates are less frequent when mandatory disclosure increases. An important exception, however, is when macroeconomic uncertainty is high, such as during the Great Recession and the COVID-19 pandemic.Note
12 month embargo; first published 24 January 2024ISSN
0823-9150EISSN
1911-3846Version
Final accepted manuscriptae974a485f413a2113503eed53cd6c53
10.1111/1911-3846.12937