(redirected from repurchasing)
Also found in: Dictionary, Thesaurus, Financial.
See: redemption
References in periodicals archive ?
Share repurchases have increased tremendously over the last three decades and much research seeks to explain repurchasing behavior.
Historically, banks have attracted a clientele that prefers dividends, and changing to a repurchasing program would likely upset this clientele and ultimately the stock price.
If information asymmetry exists, and management correctly believes the firm is undervalued, then repurchasing shares at prices below intrinsic value will benefit long-term shareholders.
By repurchasing shares banks return on equity (ROE) will increase further as compared with their return on assets (ROA).
For example: Persons (1997) examined the repurchasing share method of tender offer and concluded that a repurchase tender offer is used to signal large information asymmetries, and thus causes larger stock price increase than dividends.
Guay and Harford (2000) found that repurchasing of shares as cash payout policy allowing managers to distribute transient cash flows with commitment to frequent dividends.
Bagwell (1992) considered takeover defense as a reasons for shares repurchasing and found that the individual bid is larger for firms that have been targeted of takeover activity.
He concluded that the UK firms' activities in repurchasing their own shares are influenced by the tax consequences.
Univariate Analysis of the Differences Associated with Repurchasing Frequency
(2000), who report that dividend paying firms have less variable income than repurchasing firms, and may suggest that frequent repurchases are a substitute for dividends or dividend increases.
Cook, Krigman, and Leach (2003) find that liquidity increases and bid ask spreads decrease when firms are actively repurchasing their stock.
Table IV presents characteristics of our repurchase sample firms relative to matched control firms that are not repurchasing their stock.