Dutch auction repurchases: an analysis of shareholder heterogeneity
Article Abstract:
This paper documents that firms face upward-sloping supply carves when they repurchase shares in a Dutch auction, and it analyzes the market reaction to these offers. The announcement price increase is highly correlated with the ultimate repurchase premium. Prices decline at expiration only for pro-rated offers. The cumulative return is positive and highly correlated with the repurchase premium, excepting pro-rated offers. Much of this price increase is consistent with movement along an upward-sloping supply curve. Trading volume around the Dutch auction parallels fixed-price repurchases. Supply elasticity is larger for firms with large trading volume, firms included in the S&P 500 Index, and takeover targets. (Reprinted by permission of the publisher.)
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1992
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Does idiosyncratic risk really matter?
Article Abstract:
A study is conducted on the value-weighted portfolio returns on the NYSE/AMEX/Nasdaq stocks, to find out its relation with equal-weighted average stock volatility.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 2005
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Optimal diversification: reconciling theory and evidence
Article Abstract:
A study examining the relationship between firm diversification and performance and shareholder value maximization, is presented.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 2004
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