The determinants of share repurchases in Europe

Andriosopoulos, Dimitris and Hoque, Hafiz (2013) The determinants of share repurchases in Europe. International Review of Financial Analysis, 27. pp. 65-76. ISSN 1057-5219 (https://doi.org/10.1016/j.irfa.2012.12.003)

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Abstract

In this paper, we assess which firm-characteristics are associated with a firm's decision to announce a share repurchase programme in a cross-country framework. In the models, we incorporate firm-specific financial characteristics and measures of share price performance. We find that size, cash dividends, and ownership concentration consistently have a significant impact on share repurchase announcements in all three countries under study. However, the share price performance does not explain the decision to announce a share repurchase. The robustness of the proposed models is investigated across different dimensions of sample-matching methods and with a boot-strap technique. Finally, we construct a number of models with a robust predictive ability of a firm's likelihood to announce a share repurchase

ORCID iDs

Andriosopoulos, Dimitris ORCID logoORCID: https://orcid.org/0000-0003-3033-2308 and Hoque, Hafiz;
CORE (COnnecting REpositories)