Abstract
In contrast to the negative average abnormal return associated with the announcement of a control-related targeted repurchase (greenmail transaction), we find that the announcement of a noncontrol-related targeted repurchase is associated with a positive and significant average abnormal return. Cross-sectional analysis indicates that the change in firm value at the announcement of a noncontrol-related targeted repurchase is negatively related to the resulting changes in both insider ownership and outside blockholdings. We also find significant differences in announcement-period stock price effects depending on the identity of the selling shareholder.
Original language | English (US) |
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Pages (from-to) | 389-407 |
Number of pages | 19 |
Journal | Financial Review |
Volume | 39 |
Issue number | 3 |
DOIs | |
State | Published - Aug 2004 |
Keywords
- Event study
- G32/G34/G35
- Insider holdings
- Managerial entrenchment
- Targeted stock repurchases
ASJC Scopus subject areas
- Finance
- Economics and Econometrics