TY  - RPRT
A1  - Hackethal, Andreas
A1  - Zdantchouk, Alexandre
T1  - Signaling power of open market share repurchases in Germany
N2  - This paper shows that abnormal stock price returns around open market repurchase announcements are about four times higher in Germany than in the US (12% versus 3%). We hypothesize that this observation can be explained by country differences in repurchase regulation. Our empirical evidence indicates that German managers primarily buy back shares to signal an undervaluation of their firm. We demonstrate that the stringent repurchase process prescribed by German law attributes a higher credibility to such a signal than lax US regulations and thereby corroborate our hypothesis.
Y1  - 2005
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4865
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-5881
IS  - This version: February 2005
ER  -