Share Repurchase and Cost Stickiness

• Main Authors: Mei-ChiChen, 陳美綺
• Other Authors: Ting-Kai Chou
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/50351594073569173596

碩士 === 國立成功大學 === 財務金融研究所碩士在職專班 === 104 === This paper focuses on the relationship between share repurchase and cost stickiness. The prior literature commonly suggests that managers use stock repurchase to signal private information, and also use these along with other actions to reinforce such signals. In this study we examine whether managers use cost stickiness prior to stock repurchase to strengthen the credibility of signal, using a sample of U.S. publicly traded companies over the period 1985-2014. The empirical results show that cost stickiness prior to a fixed-price tender offer is an indicator of managerial intent to signal favorable private information.