The Real Intra-industry Spillover Effects of Share Repurchase
| Autor: | Yu-zhe Lin, 林煜哲 |
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| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 This master thesis examines whether share repurchases announced by one firm affect the real capital investment decisions of rivals in the same industry. We argue that share repurchase announcements convey information about current and future economic prospect of the announcers’ industry. This information causes rivals in the same industry to revise their beliefs about the projects’ value, and to change their subsequent investment decisions. Thus, we conjecture that changes in rivals’ investment expenditure after share repurchases are associated with information in the share repurchases. As expected, the results show that changes in rivals’ investment expenditure after share repurchase announcement are significantly associated with various proxies for information in the share repurchases. Overall, the results in our study suggest that share repurchases convey information about the investment projects of share purchasing firms’ rivals. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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