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The Role of Media in Share Repurchases

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  • Cristián Pinto

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

I examine the impact that media coverage has on open market share repurchase outcomes. I find that media coverage around repurchase announcements are negatively related to firms’ actual repurchases following the announcements. This result suggests that only firms that do not attract sufficient investor attention to the announcements follow through on their repurchase programs. Furthermore, I find that the highest cumulative abnormal returns three, six, and 12 months following the announcements correspond to firms with the lowest media coverage. These results provide new evidence that media coverage helps improve market efficiency by increasing investor attention

Suggested Citation

  • Cristián Pinto, 2015. "The Role of Media in Share Repurchases," Serie Working Papers 22, Universidad del Desarrollo, School of Business and Economics.
    • Handle: RePEc:dsr:wpaper:22
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    References listed on IDEAS

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