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The Option and Decision to Repurchase Stock

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  • Rohit Sonika
  • Nicholas F. Carline
  • Mark B. Shackleton

Abstract

type="main"> Open-market repurchase programs provide firms with the flexibility to manage the cash and risk aspects of their operations. We examine at which stage cash and risk matter in the typical stages of a repurchase program: announcement, implementation, and withdrawal. Cash and risk considerations appear to matter only at the implementation stage, and partially negate the traditional signaling effect around program announcement.

Suggested Citation

  • Rohit Sonika & Nicholas F. Carline & Mark B. Shackleton, 2014. "The Option and Decision to Repurchase Stock," Financial Management, Financial Management Association International, vol. 43(4), pages 833-855, December.
    • Handle: RePEc:bla:finmgt:v:43:y:2014:i:4:p:833-855
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    File URL: http://hdl.handle.net/10.1111/fima.12054
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    References listed on IDEAS

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    Cited by:

    1. Sonika, Rohit & Shackleton, Mark B., 2020. "Buyback behaviour and the option funding hypothesis," Journal of Banking & Finance, Elsevier, vol. 114(C).

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