The option and decision to repurchase stock
Carline, Nicholas F.
Shackleton, Mark B.
John Wiley and Sons Inc.
Reason for embargo
Publisher requires embargo of 12 months
Open-market repurchase programs provide firms with the flexibility to manage the cash and risk aspects of their operations. We examine at which stage cash and risk matter in the typical stages of a repurchase program: announcement, implementation, and withdrawal. Cash and risk considerations appear to matter only at the implementation stage, and partially negate the traditional signaling effect around program announcement.
This is the accepted version of the following article: The option and decision to repurchase stock. Financial Management, Volume 43, Issue 4, pages 833–855, Winter 2014 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/fima.12054/abstract
Vol. 43, pp. 833 - 855