Manager's Trading Around Stock Repurchases

Posted: 16 May 2007

See all articles by D. Scott Lee

D. Scott Lee

University of Nevada, Las Vegas - Lee Business School

Wayne H. Mikkelson

University of Oregon - Department of Finance

M. Megan Partch

University of Oregon - Department of Finance

Abstract

We analyze personal open market trades by managers around stock repurchases by tender offer. With the exception of Dutch auction offers, managers trade their firm's shares prior to repurchase announcements as though repurchases convey favorable inside information to outsiders. Prior to fixed price repurchase offers that do not follow takeover-related events, managers increase their buying and reduce their selling of their firm's shares. Prior to repurchases that follow takeover-related events, only a decrease in selling is found. No abnormal trading precedes Dutch auction repurchase offers.

Keywords: Insider trading, Stock repurchase

JEL Classification: G34

Suggested Citation

Lee, D. Scott and Mikkelson, Wayne H. and Partch, M. Megan, Manager's Trading Around Stock Repurchases. Journal of Finance, Vol. 47, pp. 1947-1960, 1992, Available at SSRN: https://ssrn.com/abstract=986400

D. Scott Lee (Contact Author)

University of Nevada, Las Vegas - Lee Business School ( email )

4505 S. Maryland Parkway
Box 456008
Las Vegas, NV 89154-6008
United States
702-895-2526 (Phone)
702-895-4630 (Fax)

HOME PAGE: http://faculty.unlv.edu/slee

Wayne H. Mikkelson

University of Oregon - Department of Finance ( email )

Lundquist College of Business
1208 University of Oregon
Eugene, OR 97403
United States

M. Megan Partch

University of Oregon - Department of Finance ( email )

Lundquist College of Business
1208 University of Oregon
Eugene, OR 97403
United States

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