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The Research on Repurchase Announcements of Open-Market Stock

  • Weimin Tang
  • Juanjuan Peng
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4247)

Abstract

In a repurchase program, different firms can obtain different gains when they announce a stock repurchase, so a firm needs to know whether announcement is an optimal choice. This paper presents a dynamic, two-player game model with imperfect information, analyzes its further equilibrium condition. The model shows that repurchase announcements have various effects on the firms. High-earnings firms choose to make announcements, whereas low-earnings ones are inclined not to announce.Finally, it gives empirical test for the model to validate the conclusion according to the data of China.

Keywords

High Earning Stock Repurchase Marginal Disutility Repurchase Program Repurchase Announcement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Weimin Tang
    • 1
  • Juanjuan Peng
    • 2
  1. 1.School of Science, School of AccountancyWuhan University of Technology, Zhongnan University of Economics and LawHubeiChina
  2. 2.School of SciencePeng Juanjuan, Wuhan University of TechnologyHubeiChina

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