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- Title
Corporate Stock Buybacks-Do They Enhance or Worsen Company Performance Over Time?
- Authors
STUNDA, RONALD A.
- Abstract
This paper extends prior corporate stock buyback studies by evaluating the effect of stock buybacks on growth and non-growth industries. Regression results indicate that firms categorized in above average growth industries contain a higher degree of information content over firms categorized in below average growth industries, and there appears to be a stronger earnings response among non-buyback firms in the above average growth industries. When assessing the effects of percent change in stock price correlated with long term investment, results indicate that investors perceive earnings associated with non-buyback firms to be informative and good indicators of stock prices and have a strong correlation with long term investment. However, findings indicate that investors perceive earnings associated with buyback firms to be noisy and unclear indicators of stock prices or possessing a strong correlation with long term investment.
- Subjects
STOCK repurchasing; BUSINESS development; REGRESSION analysis; CORPORATE profits; INVESTMENT management
- Publication
Quarterly Journal of Finance & Accounting, 2017, Vol 55, Issue 1/2, p1
- ISSN
1939-8123
- Publication type
Article