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Share Performance of UK Open Market Share RepurchasesIan Peter CrawfordSchool of Management, University of Bath Carol PadgettUniversity of Reading - ICMA Centre Zhiqi WangBirkbeck, University of London May 4, 2009 22nd Australasian Finance and Banking Conference 2009 Abstract: We examine long run firm performance following UK open market share repurchases announced between 1999 and 2004. We find the long run abnormal share performance among UK repurchasing firms after the initial announcement. The mean two-year abnormal buy-and-hold returns of small firms and value firms which are likely to suffer from share undervaluation are respectively 58.66% and 15.86%. However, we find inconsistency in the long run excess returns after controlling for size and book-to-market. In particular, size and book-to-market ranks are not correlated to the long run excess returns. The long run abnormal returns are not higher among firms buying back more shares. Overall, the results suggest that UK open market share repurchases might contain different information.
Keywords: UK open market share repurchases, long run abnormal returns JEL Classification: G14, G35 working papers seriesDate posted: March 28, 2011Suggested CitationContact Information
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