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Share Repurchase Behavior of Japanese Banks

Author

Listed:
  • Takashi Hatakeda

    (Graduate School of Business Administration, Kobe University)

Abstract

According to Article 210 of the Commercial Law, a bank (or a firm) with an intention of repurchasing shares has to make two decisions at the board of directors. The one is the decision about whether a bank has a tendency of repurchasing shares in the future or not and then about how many shares she repurchase if she does so. The other is the decision about how many shares she repurchases shares actually in the authorization period. In our paper we show the empirical evidence that non-performing loans and (or) the capital to asset ratio have a crucial influence on two decisions in the Japanese banking industry.

Suggested Citation

  • Takashi Hatakeda, 2006. "Share Repurchase Behavior of Japanese Banks," Discussion Papers 2006-27, Kobe University, Graduate School of Business Administration.
    • Handle: RePEc:kbb:dpaper:2006-27
    as

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    File URL: https://www.b.kobe-u.ac.jp/papers_files/2006_27.pdf
    File Function: First version, 2006
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank; Stock repurchase; non-performing loans; the capital to asset ratio;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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