Share Performance of UK Open Market Share Repurchases

Posted: 28 Mar 2011

See all articles by Ian Peter Crawford

Ian Peter Crawford

School of Management, University of Bath

Carol Padgett

University of Reading - ICMA Centre

Zhiqi Wang

Birkbeck, University of London

Date Written: May 4, 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

Suggested Citation

Crawford, Ian Peter and Padgett, Carol and Wang, Zhiqi, Share Performance of UK Open Market Share Repurchases (May 4, 2009). 22nd Australasian Finance and Banking Conference 2009. Available at SSRN: https://ssrn.com/abstract=1398694

Ian Peter Crawford

School of Management, University of Bath ( email )

University of Bath
Bath
Bath, BA2 7AY
United Kingdom

Carol Padgett

University of Reading - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

Zhiqi Wang (Contact Author)

Birkbeck, University of London ( email )

Malet Street
Bloomsbury
London, WC1E 7HX
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Abstract Views
953
PlumX Metrics