As we show in this paper, Italian companies are often involved in repurchasing with the goal of improving their stocks' market liquidity and price stability. Moreover,  the Paris Stock Exchange respectively. In contrast, Cook et al. (2004) find that repurchase trading contributes to market liquidity for NASDAQ and NYSE listed firms. effects of firms' self-tender (stock buy-back) programs on the liquidity of the underlying shares. We believe that the long-term liquidity effects cannot be fully 

share repurchases have attracted most attention by researchers. olloFwing Barclay and Smith (1988), several authors have analyzed the impact of repurchases on stock liquidity and found that repurchases reduce rather than enhance liquidity in ranceF and Hong Kong, whereas the are mentioned briefly in the Introduction: liquidity needs, private information, and risk aversion.8 Liquidity needs have always been emphasized in the microstructure literature. Since firms usually buy back significant proportions of their own stock, they are probably On the balance sheet, a share repurchase will reduce the company’s cash holdings, and consequently its total assets base, by the amount of the cash expended in the buyback. The buyback will simultaneously also shrink shareholders' equity on the liabilities side by the same amount. support the gravitational-pull hypothesis. Repurchases consume liquidity only if rms are in the lowest spread quintile, whereas repurchases enhance liquidity for the other, less liquid rms. We also revisit the notion that repurchases may lead to a deterioration in liquidity be-cause companies make use of privileged information. stock market liquidity encourages managers to substitute repurchases for dividends. Our empirical results confirm that higher levels of stock market liquidity enable managers to take advantage of the tax and flexibility advantages of repurchases. When liquidity is relatively high, non-payout firms will initiate with repurchases instead of dividends, and positive payout firms will are mentioned briefly in the Introduction: liquidity needs, private information, and risk aversion.8 Liquidity needs have always been emphasized in the microstructure literature. Since firms usually buy back significant proportions of their own stock, they are probably Stock repurchases and liquidity. Alexander Hillert, Ernst Maug and Stefan Obernberger. Journal of Financial Economics, 2016, vol. 119, issue 1, 186-209 . Abstract: We analyze the impact of share repurchases on liquidity based on a new comprehensive data set of realized share repurchases in the US, which covers 50,204 repurchase months between 2004 and 2010.

Jan 19, 2016 Stock repurchases can weaken a company's ability to weather an also reduce the free-float of shares, decreasing the liquidity of the stock.

Sep 27, 2019 Without that $4 trillion in stock buybacks, not to mention the $4 trillion in liquidity from the Federal Reserve, the stock market would not have  buy back common stock for two reasons: (1) to distribute corporate cash to repurchases on the short-term and long-term liquidity of shares for firms buying  2 days ago The decision on buybacks is consistent with our collective objective to use our significant capital and liquidity to provide maximum support to  He further stated that “this new stock repurchase program provides the Company with an opportunity to provide liquidity to shareholders and increase shareholder   Sep 13, 2019 Horizon Bancorp introduces stock repurchase program. Financial institution offers returning capital to shareholders who want liquidity. resell all repurchased shares before a new capital increase. Additionally, the program may reduce stock trading liquidity in the stock market, decreasing free. Jul 9, 2019 Repurchases will be financed primarily through free cash flow, including repurchase our stock, while maintaining ample liquidity to have the 

By Alexander Hillert, Ernst Maug and Stefan Obernberger; Abstract: We analyze the impact of share repurchases on liquidity based on a new comprehensive 

Repurchases provide liquidity when other investors sell the firm's stock or in times of crisis. No evidence exists that firms reduce liquidity when they trade on private information. We analyze the impact of share repurchases on liquidity based on a new comprehensive data set of realized share repurchases in the US, which covers 50,204 repurchase months between 2004 and 2010.

2 days ago UPDATE 1-Big U.S. banks halt stock buybacks, citing customer needs owners and governments, and add liquidity in capital markets, “even if 

24 Thus managers wishing to sell shares—for liquidity or diversification reasons or because they know the stock is overpriced—might announce an OMR in order   ket stock buybacks, rather than dividends, to distribute cash to shareholders. Repurchases might narrow the bid-ask spread and increase the stock's liquid-. Stock Repurchase Programs (SRPs) are becoming an increasingly common and Spain), issuers may also facilitate liquidity provision in their shares by  Key Words: Repurchase, Liquidity, Timing Ability, Stock Exchange of Hong Kong. Abstract: We investigate the timing of open market share repurchases and the 

Share repurchase is the re-acquisition by a company of its own stock. It represents a more flexible way (relative to dividends) of returning money to shareholders.

are mentioned briefly in the Introduction: liquidity needs, private information, and risk aversion.8 Liquidity needs have always been emphasized in the microstructure literature. Since firms usually buy back significant proportions of their own stock, they are probably

This paper analyses the characteristics of stock repurchases and sellbacks and the share will be wider and will reduce the liquidity of firm securities. However  Jan 19, 2016 Stock repurchases can weaken a company's ability to weather an also reduce the free-float of shares, decreasing the liquidity of the stock. Stock repurchases: How firms choose between a self tender offer and an open- market program information asymmetry, ownership concentration, and liquidity. generally do a poor job of choosing when to repurchase stock. Their results conclude that moderately confident repurchases decrease liquidity. Interestingly