Effect of stock price informativeness on timing of share repurchases
A potential presence of managerial learning hypothesis (MLH) in market timing of share repurchases is addressed by finance literature in conjunction with some growing empirical evidences of MLH’s presence to some corporate finance decision. Despite numerous past researches focusing solely the manage...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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IRAJ International Journals
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/72452/1/Effect%20of%20stock%20price%20informativeness%20on%20timing%20of%20share%20repurchases%20.pdf |
| _version_ | 1825950088811249664 |
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| author | Chee, Chong Meng Ab Razak, Nazrul Hisyam |
| author_facet | Chee, Chong Meng Ab Razak, Nazrul Hisyam |
| author_sort | Chee, Chong Meng |
| collection | UPM |
| description | A potential presence of managerial learning hypothesis (MLH) in market timing of share repurchases is addressed by finance literature in conjunction with some growing empirical evidences of MLH’s presence to some corporate finance decision. Despite numerous past researches focusing solely the managerial market timing, the researchers contend that the success of managerial market-timing in share repurchaseswould beattributed to the effect of private information conveyed in stock price (stock price informativeness).Research finding found evidence that managers learn private information from stock price to buy back their shares with more discount.Stock price informationess could be the tool for managers to improve their market timing skill to take advantage of stock market. The contributions of this research paper are to:identify research gaps in repurchase study;discuss effect of stock price informativeness on firm stock repurchase decision; and provide empirical finding to justify the presence of MLH. |
| first_indexed | 2024-03-06T10:09:16Z |
| format | Article |
| id | upm.eprints-72452 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T10:09:16Z |
| publishDate | 2018 |
| publisher | IRAJ International Journals |
| record_format | dspace |
| spelling | upm.eprints-724522020-06-11T04:40:38Z http://psasir.upm.edu.my/id/eprint/72452/ Effect of stock price informativeness on timing of share repurchases Chee, Chong Meng Ab Razak, Nazrul Hisyam A potential presence of managerial learning hypothesis (MLH) in market timing of share repurchases is addressed by finance literature in conjunction with some growing empirical evidences of MLH’s presence to some corporate finance decision. Despite numerous past researches focusing solely the managerial market timing, the researchers contend that the success of managerial market-timing in share repurchaseswould beattributed to the effect of private information conveyed in stock price (stock price informativeness).Research finding found evidence that managers learn private information from stock price to buy back their shares with more discount.Stock price informationess could be the tool for managers to improve their market timing skill to take advantage of stock market. The contributions of this research paper are to:identify research gaps in repurchase study;discuss effect of stock price informativeness on firm stock repurchase decision; and provide empirical finding to justify the presence of MLH. IRAJ International Journals 2018-10 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/72452/1/Effect%20of%20stock%20price%20informativeness%20on%20timing%20of%20share%20repurchases%20.pdf Chee, Chong Meng and Ab Razak, Nazrul Hisyam (2018) Effect of stock price informativeness on timing of share repurchases. International Journal of Management and Applied Science, 4 (10 pt. 1). 73 - 79. ISSN 2394-7926 http://ijmas.iraj.in/paper_detail.php?paper_id=13968&name=Effect_of_Stock_Price_Informativeness_on_Timing_of_Share_Repurchases |
| spellingShingle | Chee, Chong Meng Ab Razak, Nazrul Hisyam Effect of stock price informativeness on timing of share repurchases |
| title | Effect of stock price informativeness on timing of share repurchases |
| title_full | Effect of stock price informativeness on timing of share repurchases |
| title_fullStr | Effect of stock price informativeness on timing of share repurchases |
| title_full_unstemmed | Effect of stock price informativeness on timing of share repurchases |
| title_short | Effect of stock price informativeness on timing of share repurchases |
| title_sort | effect of stock price informativeness on timing of share repurchases |
| url | http://psasir.upm.edu.my/id/eprint/72452/1/Effect%20of%20stock%20price%20informativeness%20on%20timing%20of%20share%20repurchases%20.pdf |
| work_keys_str_mv | AT cheechongmeng effectofstockpriceinformativenessontimingofsharerepurchases AT abrazaknazrulhisyam effectofstockpriceinformativenessontimingofsharerepurchases |