The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Why Do Firms Repurchase Stock?
Open accessAbstract
Forthcoming in Journal of BusinessIn this paper, I investigate the relation between stock repurchases and distribution, investment, capital structure, corporate control, and compensation policies over the 1977 to 1996 period. I allow the significance of each motive to change over time to account for adjustments in the percentage of firms influenced by each motive. I find that, throughout the sample period, firms repurchase stock to take advantage of potential undervaluation and, in many periods, to distribute excess capital. However, firms also repurchase stock during certain periods to alter their leverage ratio, fend off takeovers, and counter the dilution effects of stock options. 1
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Cites
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
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An Engine, Not a Camera: How Financial Models Shape Markets
MacKenzie, D. (2006) · doi:10.7551/mitpress/9780262134606.001.0001 · Cited by 1,766
Farre-Mensa, J., Michaely, R., & Schmalz, M. (2014) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-110613-034259 · Cited by 224
The cost of financial flexibility: Evidence from share repurchases
Bonaimé, A. A., Hankins, K. W., & Jordan, B. D. (2016) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2016.02.002 · Cited by 68
Farre-Mensa, J., Michaely, R., & Schmalz, M. (2025) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109024000231 · Cited by 54
Metadata
- Authors
- Dittmar, A. K.
- Venue
- The Journal of Business
- Publisher
- University of Chicago Press
- Published
- 2000-07
- Volume
- 73
- Issue
- 3
- Pages
- 331-355
- ISSN
- 0021-9398 (ISSN-L)
- 1537-5374
- OpenAlex
- W1982596759
- Cited by
- 932
- References
- 1
- FWCI
- 44.54
- Type
- journal article
- Language
- en
- Open access
- green
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