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This study examines the role of growth opportunities on stock buybacks and provides evidence on the importance of signaling and agency theories in explaining stock buybacks. Both theories are required to fully explain stock buybacks. As per the signaling theory, we find that the announcement period returns are positive for stock buybacks, which indicates that the buyback firms' stock is undervalued. Furthermore, consistent with agency theory, we also find that the announcement period returns are higher for firms with low growth opportunities and high free cash flow. We also examine buyback firms' long-run stock price performance for 12 months, 24 months, and 36 months following the buyback. We use the Fama–French five-factor model to study the long-run stock performance of buyback firms because of its better explanatory power than the three-factor model. Low growth-high free cash flow firms tend to outperform their benchmark portfolios during this period. Recent regulations such as the Stock Buyback Tax can discourage low growth firms from conducting stock buybacks, which could increase agency costs. [ABSTRACT FROM AUTHOR]

We examine the key drivers behind management decisions on share repurchase from various theoretical perspectives, including the free cash flow theory and the signaling theory/hypothesis. Specifically, we investigate the relationship between share repurchase and three key drivers: surplus cash, undervaluation, and leverage, along with several control variables. Using a sample of UK-listed non-financial companies from 2012 to 2022, we apply logistic regression, standard OLS regression, and Tobit regression to identify the factors influencing share repurchase. Our findings reveal that firms repurchase shares to distribute cash to shareholders with surplus cash and Surplus investing cash flow. This study also finds that undervalued smaller firms with lower market-to-book ratios and lower leverage are more likely to repurchase shares. Our study highlights the key factors motivating companies' share repurchases, such as undervaluation, surplus cash, and leverage, examined from various theoretical perspectives, including the free cash flow theory and signaling theory. Focusing on the UK context, as well as adding a new angle in regard to applying logistic regression, standard OLS regression, and Tobit regression in combination, this research contributes to the existing body of knowledge in corporate finance. The outcome of the study has plausible implications for financial managers and investors in selecting stocks. Its practical implications will help investors gain a better understanding of the factors and forces influencing share repurchase decisions. [ABSTRACT FROM AUTHOR]

Compared with regular employees, independent contractors (ICs) offer labor flexibility and cost savings to their employers. Using a difference-in-differences design around the 2004 Massachusetts law that discourages IC usage, we find that this exogenous decrease in IC usage makes treated firms' earnings more sensitive to changes in sales, increases labor-related expenses, and reduces profitability. Firms subsequently reduce share repurchases. The decrease is more pronounced for firms with high operating leverage and financial constraints. Our results are robust to entropy balancing. We conclude that IC usage affects firms' operating leverage and profitability, which in turn, influence payout policy. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.00103. [ABSTRACT FROM AUTHOR]

The present research examined the effects of cash flow volatility on the buyback decisions of Indian firms. The sample constitutes 179 Indian companies listed on the Bombay Stock Exchange from 2012-2020. Firms have been divided into two sets, i.e., permanent and volatile cash flow firms. Across these two sets, the study determines the major factors affecting their buyback decisions. The results of ordinary least square regression suggested that when firms have fluctuating cash flows each year, they prefer to opt for repurchases than dividend payments. Further, stock undervaluation is the key determinant of repurchases decisions. Thus, firms with constant cash flows are not highly motivated for buyback decisions. Further, the study explored that larger the size of the firm, lower is the tendency to repurchase shares. Large, manufacturing and mature firms with consistent cash funds are more strongly tended towards repurchases. Correspondingly, such companies engaged in buybacks because of their low market-to-book ratios and high information asymmetry. As cash based firms become more old, their propensity to purchase equity reduces. [ABSTRACT FROM AUTHOR]

The objective of this study is to investigate the impact of social media and brand image on repurchase intention, while also examining the role of customer satisfaction as a mediating variable among consumers of Roman ceramic tiles brand in Jakarta. This research was conducted using online and offline methods to 134 respondents with the criteria of being or having been a Roman brand ceramic tile consumer in Jakarta. This study uses a quantitative approach using structural equation models and is processed using AMOS 24 software. The results also show that social media and brand image have a positive and significant effect on repurchase intention mediated by customer satisfaction. Based on the results of the study, it can be concluded that both independent variables and mediating variables can maximally increase consumer repurchase intention for Roman brand ceramic tile consumers in Jakarta. The limitation of this research is that the survey was conducted on Roman ceramic tile consumers in Jakarta and the survey period was only carried out for one month, and the respondents in this study were only consumers who live in the Jakarta area. This study seeks to understand the effect of social media and brand image on repurchase intention mediated by customer satisfaction. The results of this study are expected to provide insight for marketers and manufacturers in designing social media strategies and brand image to increase repurchase intention. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the influence of ownership structure and board composition on the probability and intensity of stock repurchases. The study's sample comprises 3,744 firm-year observations, consisting of 53 repurchasing firms with 96 firm-year observations from 2008 to 2019. Design/methodology/approach: Probit and fixed-effects regression models are used to obtain empirical results. Moreover, a probit model with a continuous endogenous regressor (IV-probit) and an instrumental variable method with two-stage least squares (IV-2SLS) estimation are used to address endogeneity. Findings: Corporations with high family or state ownership tend to inhibit stock repurchases to hoard excess free cash flow, supporting agency theory. Conversely, firms with high board independence tend to repurchase their stocks at least once to distribute free cash flows to shareholders, confirming agency theory. Nonetheless, corporations with more female directors on the board or CEO duality tend to conduct stock repurchases at least once but do not repurchase stocks with high values. Interestingly, more female directors on the board may send false signals about undervalued stocks. Originality/value: This is the first study to reveal that firms with CEO duality repurchase their stocks at least once but avoid repurchasing shares with high values. It is also the first study to explore whether women on a board may cause false signaling about undervalued stocks. Furthermore, this study reveals that family and state ownership are potential determinants of stock repurchases in countries with high ownership concentration. This is the first study to address this issue in Thailand. [ABSTRACT FROM AUTHOR]

We examine the relation between excess corporate cash holdings and equity option market liquidity from January 3, 2005 to December 31, 2019. We show that the level of cash reserve in excess of what can be captured by firm characteristics significantly explains stock option liquidity. Trading volume and option open interest increase in companies with a higher magnitude of excess cash, whereas the bid–ask spreads of stock options decline in excess cash. Our findings confirm the theoretical prediction that excess cash improves option market liquidity as it reduces adverse selection problems caused by uncertainty in firm valuations. This relation remains more pronounced with put options, out‐of‐the‐money contracts, and short‐maturity contracts. In addition, excess cash has a stronger impact on option liquidity within firms that have a greater degree of informed trading and during high‐volatility periods in financial markets. Our results show that when uncertainty about firm prospects rises, excess cash becomes more valuable and affects option market liquidity. [ABSTRACT FROM AUTHOR]

This article reviews the recently issued Proposed Regulations on the application of the stock repurchase tax in Internal Revenue Code Section 4501. The Proposed Regulations address repurchases of foreign corporate stock “funded” by a domestic entity, repurchases of preferred stock, exemptions for redemptions in a complete liquidation, and application to M&A transactions. [ABSTRACT FROM AUTHOR]

This study explores the relationship between ESG reputational risk, corporate payouts and firm value. Using a sample of 2021 US‐listed firms between 2007 and 2019, we provide robust evidence that ESG reputational risk relates to higher payouts, and that free cash flows amplify this relationship. Turning to payout composition, we document that ESG reputational risk associates with a payout mix comprising a higher analogy of share repurchases versus dividends; and that this relationship is more pronounced under financial constraints. Furthermore, we show that the market places a premium on payouts from high ESG reputational risk firms. Our findings are in line with the notion that ESG reputational risk represents agency problems and raises financial risk, inducing firms to disgorge cash via a more flexible payout regime. Results are robust to several estimation techniques that address endogeneity, self‐selection and censored observations. [ABSTRACT FROM AUTHOR]

We use transaction data of active individual investors in mutual funds to examine whether investors are momentum or contrarian by combining binomial distribution with the multinomial logit model. We find that individual investors adopt different trading strategies in making their purchase and redemption decisions, whereby they act as momentum buyers and contrarian sellers. Different fund styles do not affect investors' trading decisions based on historical returns, and investors' trading behaviours in value and dividend funds are consistent. After identifying each investor's trading strategy, we examine the impact of demographics on trading behaviour for the first time. We find that older individual investors in mutual funds are more likely to be momentums, as are those with stock trading experience. Individual investors with large transaction sizes are more likely to be momentum buyers, while investors of small sizes are contrarian. Our research not only helps managers understand the trading behaviour of individual investors but also provides some help to regulators. [ABSTRACT FROM AUTHOR]

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This article shows that mutual funds' trading experiences bias their future repurchasing decisions. Mutual funds are less likely to repurchase a stock if they previously sold the stock for a loss rather than for a gain. After switching to managing a different fund, fund managers still avoid repurchasing stocks they sold for a loss at a past fund. We do not find that mutual fund managers are biased against repurchasing past loser stocks because of superior information. Though less likely to be repurchased, repurchased losers do not underperform repurchased winners—and the fund itself—in the subsequent quarter. [ABSTRACT FROM AUTHOR]

This article examines the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on firm-level investment and capital structure policies. The study analyzes data from 534 firms and finds that while there were notable differences in capital expenditures, stock buybacks, and debt ratios between high-tax and low-tax firms following the tax policy change, the difference-in-differences analysis did not show statistically significant changes in capital expenditures or the debt ratio. However, there was a positive and significant effect for net stock buybacks. The study suggests that increased stock repurchases rather than new capital investment may have been the main outcome of the TCJA. The article acknowledges that the two-year timeframe may not capture the full impact of the legislation and provides robustness checks to support the findings. Overall, the study contributes to the existing literature on the limited impacts of corporate tax cuts and may be of interest to policymakers as many provisions of the TCJA are set to expire in 2025. [Extracted from the article]

Internal and external finance are the two primary forms of funding for businesses. Internal financing is derived from retained profits, while external financing may come through borrowing money or the issuance of stocks. Businesses utilize it constantly to grow and stay alive, so the choices they make about finance are crucial. Market timing is vital for determining the appropriate financial structure for a company's success because volatility in market valuation greatly affects the capital structure. Capital structure requires a decision-making tactic that is an art to tackle complex situations. Modigliani and Miller started this ground-breaking study on capital structure in the field of corporate finance in 1958. After that, several theories were developed, but one of those theories was the market timing theory of capital structure, which explains that firms issue new stock when their share price is overvalued and repurchase shares when their share price is undervalued. These price fluctuations of equity will affect corporate financing decisions and ultimately corporate capital structures. The goal of this study is to test the applicability of market timing theory in the context of Canadian firms; thus, the data have been collected from the FINVIZ Stock Screener for the period (2022) and analyzed by a generalized linear model technique through the EViews 13. The research concludes that the market-tobook ratio has a statistically significant negative effect on market leverage as well as book leverage. [ABSTRACT FROM AUTHOR]

This study examines the relationship between managerial reference points and corporate payout policy. We find that share repurchase activity increases as a firm's current stock price declines in relation to the price at which it previously repurchased shares. To facilitate a behavioral interpretation of this relation, we show that it weakens around stock splits, is asymmetric over gains and losses, and strengthens when prior repurchase prices are more salient. Further, the relation is not explained by traditional repurchase motives. The results suggest a behavioral pattern in which managers use prior repurchase prices as reference points for current repurchases. [ABSTRACT FROM AUTHOR]

This research is motivated by technological developments as a result of globalization, making entrepreneurs required to be able to innovate in creating interesting and creative ideas and set strategies so that companies can attract consumers and meet increasingly varied consumer needs. One of them is Cafe. Cafe has quite an important role in the culinary world. The culinary world is something that cannot be separated from the basic needs of every human being. Cafes also have a wide selection of food and beverage products to attract the attention of consumers. The purpose of this study was to determine the effect of perceived enjoyment, food quality, and hospitality on repurchase intention (Study on Cafe Bruge Consumers in Jepara, Indonesia) by taking a sample of respondents from cafe bruge consumers, as many as 96 consumers. The number of samples was taken using the non-probability sampling technique with the accidental sampling method. The results of this study indicate that perceived enjoyment, food quality, and hospitality have a positive and significant effect on repurchase intention. The coefficient of determination (adjusted R square) is 0.399, which means that perceived enjoyment, food quality, and hospitality can explain repurchase intention at Cafe Bruge Jepara by 39%. While the remaining 61% is explained by other factors not examined in this study. [ABSTRACT FROM AUTHOR]

Using the institutional theoretical perspective, this study seeks to unearth the antecedents of the mixed results in the extant literature regarding the association between corporate green investment (CGI) and profitability. The study utilized a novel dataset comprising environmental research data from Chinese A-share listed companies for the period 2010–2019. The findings indicate that CGI enhances profitability and that the positive association is reinforced by the promulgation of Environmental Protection Law 2015. Regional development also augments CGI's positive effect on firms' profitability. Nevertheless, no significant association is observed between firm profitability and CGI among firms operating within environmentally sensitive sectors. Our findings imply that apart from regulatory forces, normative and cognitive pressures are also key instruments that may be employed by governments to motivate firms to embrace greener and more sustainable practices. [ABSTRACT FROM AUTHOR]

The article discusses the emergence of new reinsurance start-ups and their potential to succeed in the market. One such start-up, Mereo Advisors, plans to build a diversified portfolio inspired by hedge funds to spread risk and outperform the market. Another start-up, Alpine Re, also prioritizes underwriting and aims to maximize underwriting profit and practice exceptional cycle management. While conditions for reinsurers have improved, breaking into the Australian market is challenging due to stringent regulatory standards set by the Australian Prudential Regulation Authority. Existing reinsurers in Australia have deep financial reserves and credit standing, making it difficult for new entrants to establish a significant presence. [Extracted from the article]

This work investigates financial volatility cascades generated by SARS-CoV-2 related news using concepts developed in the field of seismology. We analyze the impact of socio-economic and political announcements, as well as of financial stimulus disclosures, on the reference stock markets of the United States, United Kingdom, Spain, France, Germany and Italy. We quantify market efficiency in processing SARS-CoV-2 related news by means of the observed Omori power-law exponents and we relate these empirical regularities to investors' behavior through the lens of a stylized Agent-Based financial market model. The analysis reveals that financial markets may underreact to the announcements by taking a finite time to re-adjust prices, thus moving against the efficient market hypothesis. We observe that this empirical regularity can be related to the speculative behavior of market participants, whose willingness to switch toward better performing investment strategies, as well as their degree of reactivity to price trend or mispricing, can induce long-lasting volatility cascades. [ABSTRACT FROM AUTHOR]

From historical overview to contemporary problem Styhre tells the tale of growing industrial concentration, regulatory and perhaps even state capture, the rise of transnational governance through bureaucratic bodies operating in a system of democratic deficit. Expecting states to act may be a long shot, however, now that the combination of pandemic spending and support for Ukraine have created even greater state dependencies on financial markets than we saw during the financial crisis. Styhre, Alexander The New Corporate Landscape: Economic Concentration, Transnational Governance, and the Corporation Cheltenham, UK: Edward Elgar, 2022. [Extracted from the article]

This empirical analysis delves into the relationship between share repurchases and diverse sectors in the US stock market. It aims to uncover patterns in how industries engage in share repurchases and respond to evolving regulations. Using a comprehensive dataset spanning a specific period, the study evaluates the impact of these repurchases on market dynamics and investor behavior. It also examines the interplay between share repurchases, dividends, sector-specific trends, and regulatory changes to enhance our understanding of their implications on stock pricing, investor motivations, and corporate governance across sectors. Using the Bloomberg Professional Service (2019-2023), Bloomberg Terminal data, the study assesses the impact of share repurchase practices across all sectors, with the strongest effects observed in the financial and technology sectors. Notably, share repurchases have a more pronounced impact when companies possess high levels of free cash flow. Additionally, the study evaluates the influence of buyback practices on market dynamics and investor behavior. Overall, this research contributes to a nuanced understanding of how these factors collectively shape the dynamics of the US stock market, offering valuable insights for policymakers, investors, and corporate decision-makers. [ABSTRACT FROM AUTHOR]

We examine how chief executive officer (CEO) mobility affects corporate payouts. We exploit US state courts' staggered adoption of the inevitable disclosure doctrine (IDD) to obtain exogenous variation in mobility. We report several findings. First, we find that firms in IDD‐adopting states increase dividend payouts, whereas the effect of IDD on share repurchases is insignificant relative to firms not in IDD‐adopting states. Second, the increase in dividends is concentrated on firms run by CEOs having high ability. Third, CEOs increasing dividends are less likely to be forced to leave their jobs. Fourth, the increase in dividends is concentrated on firms run by early‐career CEOs rather than retiring CEOs. Last, CEOs increasing dividends receive more favorable shareholders' say on pay votes for higher pay. Our evidence supports the notion that restricted mobility induces CEOs to choose a dividend policy that enhances their positions with their shareholders. [ABSTRACT FROM AUTHOR]

The paper focuses on the factors that determine the size of an open market share repurchase in the UK. The testing covers the time period 1985–2014 and tests if the traditional motives for repurchasing shares also determine the size of the repurchase. The testing also checks if the influences of these determinants are non-linear, U-shaped or inverted U-shaped, which, to the best of our knowledge, is also a novel empirical approach. The consideration of non-linear influences on repurchase size is relevant due to the overlapping of repurchase determinants. For instance, if the distribution of excess cash is the motive for undertaking the repurchase and not replacing dividend distribution, then the influence of dividend distribution on repurchase size may conflict with the traditional expectation of repurchases being used as dividend replacements. The testing finds that the motive of using repurchases for signalling stock undervaluation has the most consistent influence on repurchase size, followed by the motives of adjusting the reported EPS when earnings are negative and for distributing surplus cash. The motive for using repurchases to adjust the capital structure to increase the debt exposure has a U-shaped influence on repurchase size, while board independence has an inverted U-shaped influence. Overall, when compared to the current literature, this paper is able to demonstrate that there is a strong consistency between the motives that lead to repurchases in the UK, and the determinants of repurchase size. [ABSTRACT FROM AUTHOR]

Drawing on agency theory and transaction cost analysis, this study investigates the impact of refranchising and buybacks of downstream retail units by franchising firms on shareholder value (i.e., stock returns). It further evaluates the contingency role of firm and industry factors in shaping this impact. An event study analysis over the years 2001–2020 confirms that both refranchising and buybacks positively affect stock returns. However, notable impact differences emerge between the two types of strategic decisions. For refranchising, firms with lower royalty rates, smaller returns-on-assets (ROA), and higher trade credit provided generate higher stock returns. Whereas, for buybacks, firms with higher royalty rates derive more value in stock markets. Analysis further shows that investors judge refranchising (buybacks) less (more) favorably in munificent industries, but industry dynamism has no effect on the stock returns generated from these moves. Together, the study offers important implications for franchising theory and retail practice in marketing. [ABSTRACT FROM AUTHOR]

Combining data on share repurchases conducted by Chinese listed companies in the public market, this study explores the impact of corporate share repurchases on capital market information efficiency. The research results show that share repurchases effectively improve the information efficiency of the capital market. The mechanism test finds that share repurchases improve the capital market information efficiency by increasing stock liquidity and improving the market information environment. In addition, the heterogeneity test finds that the positive impact of share repurchases on the information efficiency of the capital market is more significant after the launch of the new Company Law in 2018 and in a bear market. Overall, this study provides a theoretical reference on the government's efforts to improve the basic capital market system with the aim of high-quality capital market development. [ABSTRACT FROM AUTHOR]

The article analyzes the legislative norms that provide for the joint liability for damages caused by a corporate group of persons, the current practice of the Supreme Court regarding the resolution of corporate disputes on squeeze-out procedures. The history of the emergence and conditions of application of the doctrine of "lifting the corporate veil" have been studied. It was recognized as appropriate by the court to apply the doctrine of "lifting the corporate veil" in order to ensure the effective protection of minority shareholders as an extraordinary measure in case of abuse by the members of the corporate group of the right to control the company and joint actions in the process of implementing the mandatory sale of shares with the aim of buying out the shares of minority shareholders at an undervalued cost. Corporate structures of the MP Azovstal PrJSC, Avdiyiv Coke Chemical Plant PrJSC, Ukrainian Graphite PrJSC, MMK Ilycha PrJSC, DTEK Dniproenergo JSC, Zakarpattiaoblenergo PrJSC, which conducted squeeze-out procedures were analyzed. These companies conducted squeeze-out procedures using corporate structures, affiliated subsidiary companies, related persons. The beneficiaries (beneficiaries) of the acquired 100 % corporate control were determined, the application of the doctrine of "lifting the corporate veil" and bringing the members of the corporate group to joint and several liability were investigated. The issuer, the applicant of the public irrevocable claim, its affiliated persons and persons acting jointly, the ultimate beneficial owner are recognized as the proper defendants in disputes related to squeeze-out procedures. The specified persons, who make up a single corporate group, are jointly and severally liable to the minority shareholders for the damages caused in the process of the squeeze-out procedure. Derivative suit is offered to spread over the losses caused by company officials to its shareholders in the procedures of redemption, compulsory redemption and compulsory sale of shares. Disputes of compulsory sale of shares in the squeeze-out procedure belong to the subject jurisdiction of commercial courts as disputes on deeds of shares, regardless of the dispute parties. [ABSTRACT FROM AUTHOR]

The Capital Market Act establishes a general regulatory framework for trading on the Croatian capital market. The delisting of shares from the regulated market is regulated by Article 341 Capital Market Act which sets out measures for the protection of the issuer's shareholders and the delisting procedure. Such delisting generally requires a qualified majority decision of the issuer's general meeting, obligatory repurchase of shares held by some of the issuer's shareholders, and determination of the moment when the delisting decision takes effect at the regulated market. However, as the paper will demonstrate, such rules produce serious doubts as to their consistency, effectiveness, and sufficiency to conform to the needs of legal certainty, protection of the shareholders, and the rule of law. [ABSTRACT FROM AUTHOR]

The article focuses on Section 100A of the Income Tax Assessment Act 1936 in Australia, which deals with reimbursement agreements in trusts. Topics discussed include the interpretation of the words and structure of Section 100A, progress towards clarity and certainty, and the implications of the "ordinary family dealing" exclusion.

Behavioral finance has uncovered that investor engage emotionally when trading. We investigate how three psychological factors influence purchase and repurchase decisions: representativeness, the influence of prior gains, and reference points. Using trading data of 7200 UK investors we find that purchase decisions are influenced by representative heuristic and repurchase decisions are influenced by both representative heuristic and prior profitability. Further survival analysis showed that investors use the prior selling price as a unique reference point. Investors are more likely to repurchase a stock when trading above its reference point, but more likely to initiate the repurchase when trading below. Investors are influenced by previous experience and engage learning behavior when they seek to reinforce past success. As reference points are inferred but infrequently researched, this research adds to the literature and provides important and robust results for those engaging with financial planning clients. [ABSTRACT FROM AUTHOR]

In this article, we examine dividends and share repurchases of S&P 1500 firms during the COVID‐19 crisis characterized by the stock market crash and a relatively quick stock price recovery propelled by technology stocks. We find that the great majority of firms either maintain or increase the level of dividends during the crisis period. Yet, the relation between the dividend payout and reported earnings is negative and significant. This relation also holds for other types of payouts, including share repurchases and special dividends. Moreover, we find that both forecasted and realized earnings of up to 1 year into the future are negatively associated with current dividends, implying that existing payout policies are unsustainable in the longer term. Surprisingly, the difference‐in‐differences test shows that firms strongly affected by the COVID‐19 crisis have higher dividend payouts (relative to net earnings) compared to unaffected firms. The same test indicates that strongly affected firms significantly reduce repurchases. [ABSTRACT FROM AUTHOR]

In this study, we use time series analysis to examine the long-term relationships of buybacks and stock price, earnings per share, and dividend payout for individual firms listed on the Dow Jones Industrial average. If a relationship exists, it is expected to be positive for stock price and earnings per share and negative for dividend payout. Results from the time series models showed that there were few firms with a significant relationship. Only five firms showed a significant positive relationship between share buyback and stock price, and two firms showed a positive relationship between buyback and earnings per share. Furthermore, only two firms showed a negative relationship between buyback and dividend payout. The weak evidence for a long-term impact of buybacks supports the argument that buybacks do not contribute significantly to the financial strength of a firm and to its market performance. [ABSTRACT FROM AUTHOR]

This study examines insider buying before stock repurchase announcements as an undervaluation signal. We find that firms are more likely to announce a repurchase program when insiders purchase shares, particularly when purchases are made by top executives. Moreover, the effect of insider purchases on announcing a stock repurchase program is more pronounced when stock prices convey more information that is new to managers. We find that insider purchases, particularly purchases by CEOs and CFOs, are positively associated with the market reaction to the share repurchase announcements. Furthermore, investors pay more attention to purchases by CEOs and CFOs when stock prices are less informative. Finally, we find similar results for the relation between insider purchases and post-announcement stock returns. [ABSTRACT FROM AUTHOR]

The article informs about the need to revise diluted earnings per share (EPS) calculations in financial reporting standards. Topic include It highlights the historical complexity and issues with previous standards and presents recommendations for improving the economic reality and presentation of diluted EPS, especially in the context of increasing convertible bond issuances, to better serve the needs of investors, lenders, and creditors in making financial decisions.

Using a large sample of US stocks covering more than three decades, we empirically examine common criticisms of and rationales for stock repurchases. Repurchases account for a tiny fraction of the trading volume in a typical stock, making their price impact too small to generate short‐term price manipulation. Price appreciation following repurchases is modest and does not reverse on average, suggesting the small price increases following repurchases signal firms' good prospects. Also, we find no evidence that CEOs of repurchasing firms are paid excessively or that repurchases crowd out valuable investment opportunities. Because repurchases do not appear to be systematically abusive, enforcement action should be sufficient to deal with any bad actors, and significant regulation seems unwarranted. [ABSTRACT FROM AUTHOR]

The number of Special Purpose Acquisition Companies (SPACs) in the U.S. dramatically increased in 2020 and 2021. Despite promises of high returns, SPACs often fell flat and failed to live up to those promises. One SPAC, Property Solutions Acquisition Corp., was trading at around $14 per share when it merged with the electric vehicle company Faraday Future. However, within a month of the merger, shares of the combined company were trading at below $10. SPACs are companies that go public with no business operations and the sole intent to merge with a target company that will take on the SPAC's public status after the merger. SPACs are formed and taken public by sponsors who are responsible for raising the necessary capital to fund the merger and are compensated through free shares in the SPAC. Additionally, all SPAC shareholders have essential redemption rights that allow them to return their shares for the pro rata rate of the SPACs current capital before the merger. The Property Solutions example highlights the inefficiencies of SPACs that cannot deliver enough value to post-merger companies. The way SPACs compensate sponsors and the redemption rights SPACs afford shareholders are significant contributors to those inefficiencies. To correct the inefficiencies, SPACs must change how they compensate sponsors and switch to a direct compensation model where the sponsor is guaranteed a set percentage of the funds raised for the merger. Additionally, targets must provide post-merger cash bonuses based on the performance of the post-merger company, thus assuring that sponsors stick with the post-merger company and ensure its survival. SPACs also need to restructure redemption rights to limit which shareholders can redeem their shares and when. Limiting redemption rights will limit the number of redemptions and give sponsors additional time to offset redemptions by raising more capital. Finally, where SPACs fall in the current federal securities regulatory regime is unclear. Therefore, if SPACs are unwilling to self-correct their inefficiencies, there is room for Congress to regulate the industry and ensure the viability of SPACs into the future. [ABSTRACT FROM AUTHOR]

This study aims to evaluate the effect of repurchase intention on the millennial generation through e-word of mouth (e-WOM) as an intervention variable on e-satisfaction and e-trust in Bukalapak e-commerce. This study used quantitative approach and survey method using online questionnaire. The sample used was 185 respondents who were millennial generation users of Bukalapak. Data analysis was carried out using Structural Equation Modeling (SEM) with the help of Partial Least Squares (PLS) software. The results showed that e-WOM has a significant positive influence on repurchase intent, e-satisfaction, and e-trust. In addition, repurchase intent also has a significant positive influence on e-satisfaction and e-trust. These findings suggest that e-WOM can be used as a strategy to increase repurchase intent, e-satisfaction, and e-trust in Bukalapak e-commerce. Therefore, Bukalapak needs to pay attention to and improve the quality of e-WOM that appears on their platform, as well as improve the quality of service and customer experience to strengthen customers' repurchase intent, e-satisfaction, and e-trust in the future. [ABSTRACT FROM AUTHOR]

The article discusses the impact of share buybacks on companies and highlights the difficulty of distinguishing between value-creating programs and opportunistic ones. It also mentions the economic fragility shown by some companies during the pandemic that used share buyback plans. Additionally, it addresses the debate on the regulation of the crypto industry by the SEC, where some argue that it should protect small investors while others believe that regulations can hinder innovation. On the other hand, it discusses a new law in New York that would require vulture funds to grant the same refinancing conditions offered by lending governments. [Extracted from the article]

This study seeks to identify key factors in formulating a dividend policy for a firm. We revisit the theory of stock valuation and identify and explore the impact of critical factors on a firm’s dividend policy. Next, we develop a framework and investigate financial data requirements to formulate such a policy and illustrate a methodology with an example of a case study for a firm which had never paid dividends but plans to change its policy. We recommend further research into issues in development and implementation of a firm’s stock repurchase plan in lieu of or to complement a dividend policy. [ABSTRACT FROM AUTHOR]