Abstract
There has been a shift in payout policy over the last 15 years with firms opting to conduct stock repurchases over paying dividends. As repurchases have grown so has the corresponding research. Of particular note are findings that identify factors contributing to a firms buyback decision and as well as those that support the existence of long-run return anomalies. While several notable researchers have reported the prevalence and persistence of stock repurchase anomalies, this paper examines the history of repurchase theory and presents a theoretical repurchase prediction model. Using variables shown in the literature to have influence on the decision to repurchase stock, a probit estimation model is developed as a means to identify firms likely to conduct repurchase programs.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Business & Economics Research (JBER)
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
