Market-timing Ability of Low Transparency Through Fixed-price Tender Offer Stock Repurchase
Year: 2017
Type: article
Abstract: In this paper, I examine whether low transparency (LT) firms with more information asymmetry problems have more market-timing opportunities and are able to earn higher markettiming profits through fixed-Price tender offer stock repurchase.I find LT firms are more likely to announce larger repurchase than high transparency (HT) firms.In addition, the long-term performance shows that LT firms do earn higher market-timing profits than HT firms, because of incomplete and less immediate market reactions.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4387888447