HCBE Faculty Articles
Title
Determinants and Consequences of Share Repurchase Decisions
Document Type
Article
Publication Date
5-16-2018
Publication Title
Modern Economy
ISSN or ISBN
2152-7261
Volume
9
Issue/Number
5
First Page
966
Last Page
979
Abstract/Excerpt
This paper explores the determinants of share repurchase decisions within the context of a modern conceptual framework. Empirically, it categorizes such determinants by firm size, stage of the product life cycle, membership in the technology sector, ownership of overseas cash reserves, and institutional ownership. Share repurchases were used to boost earnings per share temporarily. Such effects dissipated over 1 year and 5 years. Certain categories of firms used share repurchase to grow through acquisitions, while others used share repurchase to prevent takeovers. This paper is the first study to examine share repurchase through categories of determinants within the context of short and long-term post-share repurchase performance.
DOI
https://doi.org/10.4236/me.2018.95061
NSUWorks Citation
Abraham, Rebecca; Harris, J.; and Auerbach, Joel, "Determinants and Consequences of Share Repurchase Decisions" (2018). HCBE Faculty Articles. 852.
https://nsuworks.nova.edu/hcbe_facarticles/852
