Measuring Share Repurchases

41 Pages Posted: 20 May 2005

See all articles by Kathleen M. Kahle

Kathleen M. Kahle

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

Edward Alexander Dyl

University of Arizona

Monica Banyi

Gonzaga University

Date Written: August 2005


We examine the accuracy of various approximations of firms' repurchases of common stock used in previous studies, and find that decreases in shares outstanding as reported by CRSP and purchases of common stock and preferred stock (adjusted for changes in preferred stock) are good measures of actual repurchases. We also examine how characteristics such as option usage and the announcement of repurchase programs affect the measures. Compustat purchases of common and preferred stock (adjusted for the change in preferred stock) is the most accurate measure of actual repurchases, particularly for firms with high stock options. Further, the choice of proxy can significantly impact research results. Compustat purchases of common stock is the only estimate of actual repurchases that detects the positive relation between repurchases and employee stock options in a multivariate setting.

Keywords: stock repurchases, methodology

JEL Classification: G30, G35

Suggested Citation

Kahle, Kathleen M. and Dyl, Edward A. and Banyi, Monica L., Measuring Share Repurchases (August 2005). Available at SSRN: or

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

Edward A. Dyl

University of Arizona ( email )

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

Monica L. Banyi

Gonzaga University ( email )

United States

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