Motivation for Repurchases: A Life Cycle Explanation

被引：10

作者：

Liang, Woan-lih ^{[1
]}

Chan, Konan ^{[2
,3
]}

Lai, Wei-Hsien ^{[1
]}

Wang, Yanzhi ^{[1
]}

机构：

[1] Yuan Ze Univ, Coll Management, Tao Yuan 320, Taiwan

[2] Univ Hong Kong, Sch Econ & Finance, Pokfulam, Hong Kong, Peoples R China

[3] Natl Chengchi Univ, Dept Finance, Taipei 11623, Taiwan

来源：

JOURNAL OF FINANCIAL SERVICES RESEARCH | 2013年 / 43卷 / 02期

关键词：

Repurchase; Life cycle; Signaling; Free cash flow; FREE CASH-FLOW; SHARE REPURCHASES; STOCK REPURCHASES; FIRM PERFORMANCE; TENDER OFFERS; AGENCY COSTS; RETURNS; RISK; VALUATION;

D O I：

10.1007/s10693-011-0126-7

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines the motives for share repurchases. Whereas most prior research points to either the signaling or free cash flow hypothesis, we find that the motives for repurchases differ depending on the firm's life cycle stage. Specifically, we find that a firm in the growth stage tends to announce a repurchase program to signal its undervalued stock whereas a firm in the mature stage is prone to buy back shares to dispense excess free cash flow. We also find that the market reaction to repurchase announcements corroborates this life-cycle argument.

引用

页码：221 / 242

页数：22

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