Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57340
Authors: 
Ben-Rephael, Azi
Oded, Jacob
Wohl, Avi
Year of Publication: 
2011
Series/Report no.: 
CFS Working Paper 2011/17
Abstract: 
We use new data from SEC filings to investigate how S&P 500 firms execute their open market repurchase programs. We find that smaller S&P 500 firms repurchase less frequently than larger firms, and at a price which is significantly lower than the average market price. Their repurchase activity is followed by a positive and significant abnormal return which lasts up to three months after the repurchase. These findings do not hold for large S&P 500 firms. Our interpretation is that small firms repurchase strategically, whereas the repurchase activity of large firms is more focused on the disbursement of free cash.
Subjects: 
Stock Repurchases
Stock Buybacks
Payout Policy
Timing
Bid-Ask Spread
Liquidity
JEL: 
G14
G30
G35
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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