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Conference Paper: Deregulating the Open Market Stock Repurchase Restriction Around the World: The Effects on Firm Value and Behaviors
Title | Deregulating the Open Market Stock Repurchase Restriction Around the World: The Effects on Firm Value and Behaviors |
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Authors | |
Keywords | Stock repurchase Firm value Firm behavior Cash holding Payout policy |
Issue Date | 2019 |
Publisher | European Financial Management Association . |
Citation | 28th Annual Meeting of the European Financial Management Association 2019, University of Azores, Ponta Delgada, Island of S. Miguel, Portugal, 26-29 June 2019 How to Cite? |
Abstract | We construct a unique collection of 38 countries’ deregulation laws that remove the restrictions of the open market stock repurchase. We utilize the yearly variation across the international market on the restrictions to explore the causal impact of the open market stock repurchase on corporate behaviors. We find that allowing repurchasing firms’ stocks on the secondary market decreases cash holding, capital expenditure, mergers and acquisitions and effective tax rate in developed markets, in developing markets and in general. However, the restriction removal has mixed effects on dividend payout policies and R&D expenditure. Overall, the deregulation increases firms’ return on assets and Tobin’s Q. |
Description | Session A5: Repurchases and Dividends |
Persistent Identifier | http://hdl.handle.net/10722/278816 |
DC Field | Value | Language |
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dc.contributor.author | Wang, Z | - |
dc.contributor.author | Yu, L | - |
dc.date.accessioned | 2019-10-21T02:14:33Z | - |
dc.date.available | 2019-10-21T02:14:33Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | 28th Annual Meeting of the European Financial Management Association 2019, University of Azores, Ponta Delgada, Island of S. Miguel, Portugal, 26-29 June 2019 | - |
dc.identifier.uri | http://hdl.handle.net/10722/278816 | - |
dc.description | Session A5: Repurchases and Dividends | - |
dc.description.abstract | We construct a unique collection of 38 countries’ deregulation laws that remove the restrictions of the open market stock repurchase. We utilize the yearly variation across the international market on the restrictions to explore the causal impact of the open market stock repurchase on corporate behaviors. We find that allowing repurchasing firms’ stocks on the secondary market decreases cash holding, capital expenditure, mergers and acquisitions and effective tax rate in developed markets, in developing markets and in general. However, the restriction removal has mixed effects on dividend payout policies and R&D expenditure. Overall, the deregulation increases firms’ return on assets and Tobin’s Q. | - |
dc.language | eng | - |
dc.publisher | European Financial Management Association . | - |
dc.relation.ispartof | European Financial Management Association 2019 Annual Meeting | - |
dc.subject | Stock repurchase | - |
dc.subject | Firm value | - |
dc.subject | Firm behavior | - |
dc.subject | Cash holding | - |
dc.subject | Payout policy | - |
dc.title | Deregulating the Open Market Stock Repurchase Restriction Around the World: The Effects on Firm Value and Behaviors | - |
dc.type | Conference_Paper | - |
dc.identifier.email | Wang, Z: wangzg@hku.hk | - |
dc.identifier.authority | Wang, Z=rp02039 | - |
dc.identifier.hkuros | 307597 | - |