Determinants of Share Repurchases A Quantile Regression Approach
Chasiotis, I., Georgantopoulos, G.A., Eriotis, N. (2021) "Determinants of share repurchases: A quantile regression approach", Economics and Business Letters 10(1), pp. 27-36.
10 Pages Posted: 10 Mar 2021 Last revised: 15 Dec 2021
Date Written: February 23, 2021
This study utilizes quantile regressions to investigate the effect of the determinants of share repurchases on firms at different points of the share repurchases distribution. Empirical results from a large panel of NYSE repurchasing firms, document an asymmetric effect of several determinants on share repurchases in terms of size, significance and direction. Excess capital, stock options and growth opportunities are significant throughout the distribution and their impact increases at successive quantiles while ownership concentration and leverage exhibit sign reversals between lower and upper quantiles. These differing effects are attributed to highly heterogeneous firm characteristics across quantiles.
Keywords: share repurchases, quantile regressions, NYSE
JEL Classification: G32, G35
Suggested Citation: Suggested Citation