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The Option and Decision to Repurchase Stock
Author(s) -
Sonika Rohit,
Carline Nicholas F.,
Shackleton Mark B.
Publication year - 2014
Publication title -
financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.647
H-Index - 68
eISSN - 1755-053X
pISSN - 0046-3892
DOI - 10.1111/fima.12054
Subject(s) - business , cash , share repurchase , flexibility (engineering) , stock (firearms) , finance , open market operation , actuarial science , monetary economics , economics , corporate governance , mechanical engineering , monetary policy , management , engineering , shareholder
Open‐market repurchase programs provide firms with the flexibility to manage the cash and risk aspects of their operations. We examine at which stage cash and risk matter in the typical stages of a repurchase program: announcement, implementation, and withdrawal. Cash and risk considerations appear to matter only at the implementation stage, and partially negate the traditional signaling effect around program announcement.