Share Repurchase Regulations: Do Firms Play by the Rules?

40 Pages Posted: 1 Aug 2008 Last revised: 17 Jun 2015

See all articles by Edith Ginglinger

Edith Ginglinger

Université Paris-Dauphine, PSL Research University; European Corporate Governance Institute (ECGI)

Jacques Hamon

Université Paris Dauphine - CEREG

Date Written: July 30, 2008


Open market share repurchases are strictly regulated to prevent managers from taking advantage of selling shareholders. We examine compliance with these rules in France, where the mandatory disclosure of share repurchases provides detailed information on repurchases actually undertaken. Using a database containing 36,848 repurchases made by 352 French firms over the period 2000-2002, we show that very few firms fully comply with the regulations for all their buybacks. We document that illegal repurchases before earnings announcements are the most detrimental to selling shareholders.

Keywords: open market share repurchases, insider trading, regulation, liquidity

JEL Classification: K22, G18, G35

Suggested Citation

Ginglinger, Edith and Hamon, Jacques, Share Repurchase Regulations: Do Firms Play by the Rules? (July 30, 2008). International Review of Law and Economics, 2009, 29, 81-96, Available at SSRN:

Edith Ginglinger (Contact Author)

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775

European Corporate Governance Institute (ECGI) ( email )

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

Jacques Hamon

Université Paris Dauphine - CEREG ( email )

Place du Marechal de Lattre Tassigny

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