Errors in Estimating Share Repurchases

42 Pages Posted: 16 Jun 2008 Last revised: 13 Oct 2010

See all articles by Monica Banyi

Monica Banyi

Gonzaga University

Edward Alexander Dyl

University of Arizona

Kathleen M. Kahle

University of Arizona - Department of Finance; European Corporate Governance Institute (ECGI)

Date Written: June 12, 2008


We examine the accuracy of various estimates of firms' repurchases of common stock used in earlier studies, and find high error rates in the most commonly used estimators. We also find that the procedure used to estimate open market share repurchases can significantly impact results. The Compustat-based measure, which is the most accurate, deviates from the actual number of shares repurchased by more than 30% in about 16% of the cases. We conclude that many studies should be revisited now that the SEC mandates disclosure of precise information about share repurchases in Forms 10-Q and 10-K.

Keywords: stock repurchases, share repurchases

JEL Classification: G12, G35

Suggested Citation

Banyi, Monica L. and Dyl, Edward A. and Kahle, Kathleen M., Errors in Estimating Share Repurchases (June 12, 2008). Journal of Corporate Finance, Vol. 14, No. 4, 2008, Available at SSRN:

Monica L. Banyi

Gonzaga University ( email )

United States

Edward A. Dyl

University of Arizona ( email )

Department of Finance
Tucson, AZ 85721
United States
520-621-9534 (Phone)
520-621-1261 (Fax)

Kathleen M. Kahle (Contact Author)

University of Arizona - Department of Finance ( email )

McClelland Hall
P.O. Box 210108
Tucson, AZ 85721-0108
United States
520-621-7489 (Phone)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

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