Abstract
This paper investigates the announcement of intention to repurchase shares in the open market and the respective actual repurchase trades. We find that firms repurchase on average 74% of the intended amount of shares. In addition, size, leverage and dividend yield have a positive relationship with the completion rate of repurchase programme, contrary to the initiation lag and ownership concentration which have a negative relationship. We document that repurchasing firms experience a significant decline in systematic risk when the repurchase trades are executed, not when announcing the intention to repurchase. Finally, Fama-French regressions and the decomposition of firms’ total risk in systematic and idiosyncratic risk confirms our findings on risk changes.
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