Motivation for Repurchases: A Life Cycle Explanation

Title	Motivation for Repurchases: A Life Cycle Explanation
Creator	湛可南 Liang, Woan-lih ; Chan, Konan ;Lai, Wei-Hsien ; Wang, Yanzhi
Contributor	財管系
Key Words	Repurchase;Life cycle ;Signaling; Free cash flow
Date	2013-04
Date Issued	21-Nov-2013 14:56:38 (UTC+8)
Summary	This study examines the motives for share repurchases. Whereas most prior research points to either the signaling or free cash flow hypothesis, we find that the motives for repurchases differ depending on the firm’s life cycle stage. Specifically, we find that a firm in the growth stage tends to announce a repurchase program to signal its undervalued stock whereas a firm in the mature stage is prone to buy back shares to dispense excess free cash flow. We also find that the market reaction to repurchase announcements corroborates this life-cycle argument.
Relation	Journal of Financial Services Research, 43, (2),221-242
Type	article
DOI	http://dx.doi.org/10.1007/s10693-011-0126-7

dc.contributor	財管系	en_US
dc.creator (作者)	湛可南	zh_TW
dc.creator (作者)	Liang, Woan-lih ; Chan, Konan ;Lai, Wei-Hsien ; Wang, Yanzhi	en_US
dc.date (日期)	2013-04	en_US
dc.date.accessioned	21-Nov-2013 14:56:38 (UTC+8)	-
dc.date.available	21-Nov-2013 14:56:38 (UTC+8)	-
dc.date.issued (上傳時間)	21-Nov-2013 14:56:38 (UTC+8)	-
dc.identifier.uri (URI)	http://nccur.lib.nccu.edu.tw/handle/140.119/61758	-
dc.description.abstract (摘要)	This study examines the motives for share repurchases. Whereas most prior research points to either the signaling or free cash flow hypothesis, we find that the motives for repurchases differ depending on the firm’s life cycle stage. Specifically, we find that a firm in the growth stage tends to announce a repurchase program to signal its undervalued stock whereas a firm in the mature stage is prone to buy back shares to dispense excess free cash flow. We also find that the market reaction to repurchase announcements corroborates this life-cycle argument.	en_US
dc.format.extent	308526 bytes	-
dc.format.mimetype	application/pdf	-
dc.language.iso	en_US	-
dc.relation (關聯)	Journal of Financial Services Research, 43, (2),221-242	en_US
dc.subject (關鍵詞)	Repurchase;Life cycle ;Signaling; Free cash flow	en_US
dc.title (題名)	Motivation for Repurchases: A Life Cycle Explanation	en_US
dc.type (資料類型)	article	en
dc.identifier.doi (DOI)	10.1007/s10693-011-0126-7	en_US
dc.doi.uri (DOI)	http://dx.doi.org/10.1007/s10693-011-0126-7	en_US