The many facets of privately negotiated stock repurchases

• 成果类型: Article
• 署名作者: Peyer, UC; Vermaelen, T
• 署名单位: INSEAD Business School
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2004.02.003
• 发表日期: 2005
• 页码: 361-395
• 关键词: targeted share repurchase; greenmail; market efficiency

摘要

We investigate the causes and consequences of 737 privately negotiated share repurchases in the years 1984 2001. In contrast to the negative announcement returns and positive repurchase premiums reported by past research, we find positive announcement returns and premiums that are not significantly different from zero. Only when we investigate the 60 greenmail events separately do we find results similar to past research. However, for this subsample, we find long-horizon excess returns that are comparable to the average 18% repurchase premium, challenging the widely accepted opinion that managers overpay in greenmail repurchases. Moreover, we find that our understanding of the event improves when we split the non-greenmail repurchases according to the price paid. Repurchases at a premium can be modeled as signals, while other repurchases are mere wealth transfers between the corporation and the selling stockholders, the extent of which is determined by the relative bargaining power of the seller and the repurchasing firm. (C) 2004 Elsevier B.V. All rights reserved.