Managers' Trading Around Stock Repurchases

Managers' Trading Around Stock Repurchases

We analyze personal open market trades by managers around stock repurchases by tender offer. With the exception of Dutch auction offers, managers trade their firm's shares prior to repurchase announcements as though repurchases convey favorable inside information to outsiders. Prior to fixed pr...

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Bibliographische Detailangaben
Veröffentlicht in:The Journal of finance (New York) 1992-12, Vol.47 (5), p.1947-1961
Hauptverfasser: LEE, D. SCOTT, MIKKELSON, WAYNE H., PARTCH, M. MEGAN
Format: Artikel
Sprache:eng
Schlagworte:
Auctions
Effects
Financial management
Fixed prices
Insider trading
Managers
Repurchasing
Sales management
Securities trading
Shorter Papers
Significance level
Stock buyback
Stock prices
Stock redemptions
Stocks
Studies
Tender offers
Trade
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Beschreibung
Zusammenfassung:We analyze personal open market trades by managers around stock repurchases by tender offer. With the exception of Dutch auction offers, managers trade their firm's shares prior to repurchase announcements as though repurchases convey favorable inside information to outsiders. Prior to fixed price repurchase offers that do not follow takeover-related events, managers increase their buying and reduce their selling of their firm's shares. Prior to repurchases that follow takeover-related events, only a decrease in selling is found. No abnormal trading precedes Dutch auction repurchase offers.
ISSN:0022-1082
1540-6261
DOI:10.1111/j.1540-6261.1992.tb04690.x