Information Disclosure, CEO Traits and Share Buyback Completion Rates

46 Pages Posted: 16 Mar 2012 Last revised: 17 Jan 2019

See all articles by Dimitris Andriosopoulos

Dimitris Andriosopoulos

Strathclyde Business School

Hafiz Hoque

University of York; City University London - Sir John Cass Business School

Kostas D. Andriosopoulos

ESCP Europe Business School

Date Written: March 15, 2012

Abstract

Open market buybacks are not firm commitments and there is limited evidence on whether firms repurchase the intended shares. We employ a comprehensive set of hand-collected data on information disclosure on open market share buyback announcements and the respective buyback trades in UK. We assess whether CEO traits can affect the buyback completion rates. We show that information disclosure is one of the major determinants of buyback completion rates. Like previous studies, we find that large and widely held firms, firms conducting subsequent buyback programmes, and firms which complete their previous programmes, have higher completion rates. Finally, we find that firms with senior CEOs, who hold external directorships and have received a business education, are more likely to complete their buyback programs. Our results suggest there is clear relationship between information disclosure, CEO traits and buyback completion rates.

Suggested Citation

Andriosopoulos, Dimitris and Hoque, Hafiz and Andriosopoulos, Kostas D., Information Disclosure, CEO Traits and Share Buyback Completion Rates (March 15, 2012). Journal of Banking and Finance, Vol. 37, No. 12, 2013. Available at SSRN: https://ssrn.com/abstract=2023051 or http://dx.doi.org/10.2139/ssrn.2023051

Dimitris Andriosopoulos (Contact Author)

Strathclyde Business School ( email )

199 Cathedral Street
Department of Accounting and Finance
Glasgow, G4 0QU
United Kingdom
+44(0)1415483892 (Phone)

HOME PAGE: http://www.strath.ac.uk/staff/andriosopoulosdimitrisdr/

Hafiz Hoque

University of York ( email )

The York Management School
York, YO10 5GD
United Kingdom
+44 (0) 7515890949 (Phone)

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44(0)7515890949 (Phone)
+44(0)2070408546 (Fax)

Kostas D. Andriosopoulos

ESCP Europe Business School ( email )

527 Finchley Road
Hampstead
London, London NW3 7BG
Great Britain
02074438809 (Phone)

HOME PAGE: http://www.escpeurope.eu/nc/faculte-recherche/corps-professoral-escp-europe/professor/name/andriosop

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