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.)

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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.

Securities issued, listed, Capital Management-Stock Repurchase, Securities, Company securities, Stock markets, Stock market, Stock offerings

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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.

Diversification (Investments)

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