Accelerated share repurchases |
| |
Authors: | Leonce Bargeron Manoj Kulchania Shawn Thomas |
| |
Affiliation: | a Katz Graduate School of Business, University of Pittsburgh, USA b College of Business Administration, Marquette University, USA |
| |
Abstract: | Accelerated share repurchases (ASRs) are credible commitments by firms to repurchase shares immediately. Including an ASR in a repurchase program reduces the flexibility that firms have to alter an announced program in response to subsequent changes in the price and liquidity of its shares, unexpected shocks to cash flow and/or investment, etc. Thus, we investigate whether firms' decisions to include ASRs in their repurchase programs are associated with factors expected to influence the costs of lost flexibility and the benefits of enhanced credibility and immediacy. We find robust evidence consistent with the costs of lost flexibility and the benefits of credibility and immediacy being important determinants of ASR adoption. Additionally, we find that ASR announcements are associated with positive average abnormal stock returns. |
| |
Keywords: | G35 G32 |
本文献已被 ScienceDirect 等数据库收录! |
|