Additional evidence on the frequency of share repurchases and managerial timing

Abstract

Abstract Are firms with multiple share repurchase programs associated with positive abnormal performance and is the performance related to cash flow levels in firms? Do managers repurchase the firm's shares at a lower price than a naive investor? In this paper, I analyze these questions using a unique hand-collected data set with detailed information of repurchase transactions. The findings show that firms with multiple repurchase programs have returns that exceed the return on stocks in firms with fewer programs by 79 basis points per month and that firms with high cash flows have higher returns than firms with low cash flows. The results do not support the idea that managers can repurchase the firm's stocks at a lower price than an average investor can.