The Effects of Stock Repurchases on Rival Firms

MICHAEL G. HERTZEL

doi:10.1111/j.1540-6261.1991.tb02681.x

The Effects of Stock Repurchases on Rival Firms

MICHAEL G. HERTZEL

Research output: Contribution to journal › Article › peer-review

57 Scopus citations

Abstract

This paper investigates the stock price behavior of rival firms in the same industry as firms announcing stock repurchase tender offers. Using a sample of 134 repurchase announcements, I find that rival firms on average realize insignificant announcement period abnormal returns. Negative rival stock price performance is detected over longer intervals surrounding the announcement period and for a subset of announcements which ex ante were identified as most likely to affect rivals. This evidence, however, is statistically weak and does little to alter the overall conclusion that the information in repurchase announcements is primarily firm‐specific. 1991 The American Finance Association

Original language	English (US)
Pages (from-to)	707-716
Number of pages	10
Journal	The Journal of Finance
Volume	46
Issue number	2
DOIs	https://doi.org/10.1111/j.1540-6261.1991.tb02681.x
State	Published - Jun 1991
Externally published	Yes

ASJC Scopus subject areas

Economics and Econometrics
Accounting
Finance

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10.1111/j.1540-6261.1991.tb02681.x

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The Effects of Stock Repurchases on Rival Firms

Abstract

ASJC Scopus subject areas

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