Lazaridis School of Business & Economics
Long-Run Returns Following Open Market Share Repurchases (ABSTRACT)
W. McNally & B. Smith
published: 2007 | Research publication | Refereed Journals - Finance
McNally, W., & B. Smith (2007). "Long-Run Returns Following Open Market Share Repurchases." Journal of Banking and Finance, 31 (3), 703-717.
ABSTRACT: Past studies find abnormal returns to buying after repurchase program announcements. We analyze the profitability of trading after both program announcements and individual repurchase trade publication using different trading strategies - market and limit orders. The analysis of trades is possible because of a unique Canadian data set. The highest abnormal returns are earned by companies on their own repurchase trades which benefits the non-tendering shareholders. For the public investor, we find no strategies that, in practice, would earn abnormal returns to buying after program announcements. However, there is qualified evidence of abnormal returns to a limit order strategy following publication of individual repurchase trades.
Download the article at: http://proquest.umi.com/pqdweb?did=1225073021&sid=2&Fmt=2&clientId=27850&RQT=309&VName=PQD
revised Apr 9/07
View all Lazaridis School of Business & Economics documents