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- Publisher Website: 10.1561/108.00000046
- Scopus: eid_2-s2.0-85105788363
- WOS: WOS:000648705000004
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Article: Effects of Legalizing Open Market Share Repurchases: International Evidence
Title | Effects of Legalizing Open Market Share Repurchases: International Evidence |
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Authors | |
Keywords | Share repurchases firm value firm investment cash holding payout policy |
Issue Date | 2021 |
Publisher | Now Publishers Inc. The Journal's web site is located at https://www.nowpublishers.com/LFA |
Citation | Journal of Law, Finance, and Accounting, 2021, v. 6 n. 1, p. 125-177 How to Cite? |
Abstract | By constructing a unique dataset of deregulation laws from 38 countries and utilizing yearly variation in law passage for these markets, we causally identify the effects of legalizing open market share repurchases. After legalization, treasury shares and stock repurchases increase, while dividend, cash holding, capital expenditure, and acquisitions decrease, leading to an increase in post-legalization stock returns and firm value. The effects are weaker in countries with trading restrictions, in countries with lower net tax rates on dividends, for firms with higher target payout ratios, and for financially constrained firms. No macro variables are found to predict the timing of legalization. |
Persistent Identifier | http://hdl.handle.net/10722/300237 |
ISSN | 2023 Impact Factor: 0.1 2023 SCImago Journal Rankings: 0.371 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Wang, Z | - |
dc.contributor.author | Yu, L | - |
dc.date.accessioned | 2021-06-04T08:40:06Z | - |
dc.date.available | 2021-06-04T08:40:06Z | - |
dc.date.issued | 2021 | - |
dc.identifier.citation | Journal of Law, Finance, and Accounting, 2021, v. 6 n. 1, p. 125-177 | - |
dc.identifier.issn | 2380-5005 | - |
dc.identifier.uri | http://hdl.handle.net/10722/300237 | - |
dc.description.abstract | By constructing a unique dataset of deregulation laws from 38 countries and utilizing yearly variation in law passage for these markets, we causally identify the effects of legalizing open market share repurchases. After legalization, treasury shares and stock repurchases increase, while dividend, cash holding, capital expenditure, and acquisitions decrease, leading to an increase in post-legalization stock returns and firm value. The effects are weaker in countries with trading restrictions, in countries with lower net tax rates on dividends, for firms with higher target payout ratios, and for financially constrained firms. No macro variables are found to predict the timing of legalization. | - |
dc.language | eng | - |
dc.publisher | Now Publishers Inc. The Journal's web site is located at https://www.nowpublishers.com/LFA | - |
dc.relation.ispartof | Journal of Law, Finance, and Accounting | - |
dc.subject | Share repurchases | - |
dc.subject | firm value | - |
dc.subject | firm investment | - |
dc.subject | cash holding | - |
dc.subject | payout policy | - |
dc.title | Effects of Legalizing Open Market Share Repurchases: International Evidence | - |
dc.type | Article | - |
dc.identifier.email | Wang, Z: wangzg@hku.hk | - |
dc.identifier.authority | Wang, Z=rp02039 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1561/108.00000046 | - |
dc.identifier.scopus | eid_2-s2.0-85105788363 | - |
dc.identifier.hkuros | 322705 | - |
dc.identifier.volume | 6 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 125 | - |
dc.identifier.epage | 177 | - |
dc.identifier.isi | WOS:000648705000004 | - |
dc.publisher.place | United States | - |