chunk1

ABSTRACT. Corporate stock buybacks have become increasingly popular in recent years and are typically rationalized as a means of increasing shareholder wealth. However, most empirical studies have only examined short term market reactions to announcements of stock buybacks. Although findings often reveal significant positive abnormal returns, very few studies have examined the longer term value creation consequences. This paper considers the stock buyback, its potential drawbacks, and empirically explores the longer term results in terms of market capitalization changes. Although other intervening variables may have an influence, our findings do suggest that longer term shareholder value is elusive following corporate stock buybacks. pp. 11–28
JEL codes: G34; M14; O16

Keywords: stock buybacks; repurchases; market capitalization; shareholder value

How to cite: Keasler, Terrill, and Robin T. Byerly (2015), “An Examination of Corporate Stock Buybacks: Do They Really Create Value?,” Economics, Management, and Financial Markets 10(4): 11–28.

Received 24 July 2014 • Received in revised form 21 October 2014
Accepted 2 July 2015 • Available online 15 December 2015

TERRILL KEASLER
This email address is being protected from spambots. You need JavaScript enabled to view it.
Department of Finance, Banking, & Insurance,
Appalachian State University, Boone, NC
ROBIN T. BYERLY
This email address is being protected from spambots. You need JavaScript enabled to view it.
Department of Management,
Appalachian State University, Boone, NC

Home | About Us | Sales | Author's Page | Journals | Abstracting & Indexing | Contributors | Books | Contact | Online Access

© 2009 Addleton Academic Publishers. All Rights Reserved.

 
Joomla templates by Joomlashine