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Actual share repurchases, timing and liquidity

Author

Listed:
  • Edith Ginglinger

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Jacques Hamon

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

Research on the impact of open market share repurchases has been hindered by the lack of data available on actual share repurchases in many countries, including the US. Using a previously unused database containing detailed information on 36,848 repurchases made by 352 French firms, we show that corporate share repurchases have a significant adverse effect on liquidity as measured by bid–ask spread or depth. Our results also indicate that share repurchases largely reflect contrarian trading rather than managerial timing ability.

Suggested Citation

  • Edith Ginglinger & Jacques Hamon, 2007. "Actual share repurchases, timing and liquidity," Post-Print halshs-00136568, HAL.
    • Handle: RePEc:hal:journl:halshs-00136568
    DOI: 10.1016/j.jbankfin.2006.07.006
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00136568
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    References listed on IDEAS

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