Why Does Stock Repurchase Change Over Time?

• Main Authors: Yuan-Teng Hsu, 許元鐙
• Other Authors: Chia-Wei Huang
• Format: Others
• Language: en_US
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/9fmnrk

博士 === 元智大學 === 管理學院博士班 === 104 === Recent studies have shown two break changes in stock repurchases at 2002 and 2007. We examine these time changes in stock repurchases through the lens of real activities earnings management and report findings that managers are more likely to manipulate earnings through stock repurchases after the passage of SOX 2002 and experience less incentives to manipulate earnings through stock repurchases during the 2008-2009 financial crisis. Furthermore, our result sheds light on the puzzle of the comovement between stock repurchases and issues as mentioned in Dittmar and Dittmar (2008). Overall, our results suggest that manager considering earnings management via stock repurchases can be a significant determinant of the dynamic of stock repurchases.