Further, some argue that tax competition is also beneficial by limiting the power of. Theo vermaelen is a professor of finance, the ubs chair in investment banking, endowed in honour of henry grunfeld, and and the chair of the finance area at insead. The determinants of coco bond prices the journal of derivatives. We find that the average abnormal fouryear buyandhold return measured. Josef lakonishok and theo vermaelen, faculty of management, tel aviv university. Theo vermaelen, professor of finance at insead, says this critique is misplaced and reflects a lack of understanding of what we teach in finance courses. Some argue that tax competition is beneficial by forcing governments to impose efficient tax prices on.
What do we know by gustavo grullon and about stock david l. Most downloaded journal of financial economics articles. Acquisition finance and market timing theo vermaelen 1 and moqi xu 2 1insead. Journal of financial economics 39 23, 181208, 1995. All content in this area was uploaded by theo vermaelen. Chan, louis chan, eugene fama, bruce lehmann, mark ready, jay ritter, william schwert, theo vermaelen, and the editor, rene stulz, and anonymous referees. Theo vermaelen is a professor of finance, the ubs chair in investment banking, endowed in honour of henry grunfeld, and and the chair of the finance area. Share repurchases foundations and trendsr in finance. Massa, massimo and rehman, zahid and vermaelen, theo, mimicking repurchases february 26, 2005. Lakonishok and vermaelen 1990 find that on average, prices remain at bargain levels for at least two years. Beating the market with share buybacks request pdf.
Pages ex1ex4, 205416 february 2004 download full issue. Recently, concerns have been raised over the robustness of these findings. Citescore values are based on citation counts in a given year e. Death spiral convertibles by pierre hillion, theo vermaelen. Mimicking repurchases by massimo massa, zahid rehman, theo. Dec 01, 2005 share repurchases foundations and trendsr in finance vermaelen, theo on. Ny 148534201, usa theo vermaelen catholic university of leuven, 3000 leuven, belgium received september 1984. Share repurchases tax competition and coordination is one of the most pressing issues for tax authorities in modern economies, but it is a highly controversial subject. We estimate the crosssectional relationship between open market repurchases and accounting data for a large sample of dividend paying and nondividend paying firms over a twelve year period 198495. Advanced international corporate finance overview insead. In a share buyback programme, the company distributes the excess cash flow among the shareholders by way of repurchasing its own shares, generally at a premium. Buybacks around the world market timing, governance and regulation alberto manconi urs peyer theo vermaelen september 2015 abstract we document the consequences of open market share repurchases in a global setting, using over 20,000 announcements from 32 countries.
Dec 01, 2005 buy share repurchases foundations and trends r in finance by vermaelen, theo isbn. Journal of financial economics vol 39, issues 23, pages. Market underreaction to open market share repurchases. Evgeniou, theodoros and vermaelen, theo, share buybacks and gender diversity june 27, 2017. Jones graduate school of business administration, rice university. Pdf this text provides an overview of research on stock repurchases. Share buybacks have become a common event in the financial markets worldwide. Taxinduced trading around exdividend days sciencedirect. The paper was written when both authors were at the university of british columbia. Department of applied economics, catholic university of leuven and e. Office tools downloads master pdf editor by code industry ltd.
Shareholder value maximization encourages unethical behaviour smith and van wassenhove, business week 2010 2. For value stocks, where a stronger case can be made for. Dann 1981, vermaelen 1981, comment and jarell 1991, stephens and weisbach 1998, ikenberry et al. Some argue that tax competition is beneficial by forcing governments to impose efficient tax prices on residents for the provision of public services. An empirical study author links open overlay paneltheovermaelen.
In this paper we propose a new security, the call option enhanced reverse convertible coerc. He teaches in the mba, phd and executive education programmes and is an academic director of the advanced international corporate finance programme. Evidence from buybacks around the world march 7, 2018. American finance association university of rochester. Download limit exceeded you have exceeded your daily download allowance. Tax competition and coordination is one of the most pressing issues for tax authorities in modern economies, but it is a highly controversial subject. Barcelona and belgium national team club career statistics. Regulation, taxes, and share repurchases in the united kingdom.
Is business ethics incompatible with shareholder value maximization. Evidence from buybacks around the world volume 54 issue 5 alberto manconi, urs peyer, theo vermaelen. Meir statman, and theo vermaelen for helpful comments. Simple technical trading rules and the stochastic properties of stock returns. Theo vermaelen ikenberry is at rice university and was a visiting scholar at the university of washington while working on this paper. Applied corporate finance joel peress and theo vermaelen analysis for financial management by robert c. Lakonishok is at the university of illinois and the national bureau of economic research. Theo vermaelen, moqi xu acquisition finance and market timing article published version refereed. Share repurchases foundations and trendsr in finance vermaelen, theo on. Hillion, pierre and vermaelen, theo, death spiral convertibles may 2001. The many facets of privately negotiated stock repurchases. The paper was presented at the afa meetings at new orleans, the amsterdam institute of finance, the nber summer institute, the university of limburg. This table does not distinguish between new programs and program extensions.
Lakonishok, josef and theo vermaelen, 1990, anomalous price behavior around repurchase tender offers, journal of. The paper was presented at the afa meetings at new orleans, the amsterdam institute of finance, the. Theo vermaelen s presentation for our financial innovation. Theo vermaelens presentation for our financial innovation.
Coerc as a new financing instrument for corporations. Thomas vermaelen born 14 november 1985 is a belgian football player. Share buybacks and gender diversity by theodoros evgeniou. Please contact the publisher regarding any further use of this work. We also find that firms announcing share repurchases earn smaller excess returns, both in. Among the various reasons for doing so, the most prominent is the fact that the company wants to indicate to the share holders that it has huge. Massimo and rehman, zahid and vermaelen, theo, mimicking repurchases february 26, 2005. Dann, josef lakonishok, al rappaport, cliff smith, rene stulz, tom swann, theo vermaelen, and seminar participants at insead, the university of virginia, and the university of rochester. European corporate governance institute ecgi finance working. European corporate governance institute ecgi finance working paper no. What do we know by gustavo grullon and about stock. Theo vermaelen, moqi xu acquisition finance and market timing. Regulation, taxes, and share repurchases in the united kingdom, the journal of business, university of chicago press, vol. The determinants of coco bond prices the journal of.
The views expressed herein are those of the authors and not necessarily those of the national bureau of economic research. Please contact the publisher regarding any further use of. Shareholder value is defined as the present value of free cash flows from now until infinity, discounted at a rate that reflects the risks of these cash flows. Thomas vermaelen simple english wikipedia, the free. Abstract this article compares the market value of highly leveraged transactions hlts to the discounted value of their corresponding cash flow forecasts. Repurchase tender offers, signaling, and managerial incentives. Theo vermaelen we examine longrun firm performance following open market share repurchase announcements, 19801990. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. France 33 1 60 72 42 63 phone 33 1 60 72 40 45 fax download this paper.
Baker and ruback gratefully acknowledge financial support from the division of research of the harvard business school. His key attributes include aerial ability, leadership skills, and his. Jul 25, 2016 evgeniou, theodoros and vermaelen, theo, share buybacks and gender diversity june 27, 2017. Market underreaction to open market share repurchases citeseerx. We examine share repurchase activity in the united kingdom over a period when the tax and regulatory environment changed drastically. We find that the form and intensity of repurchase activity in the united kingdom is influenced by the tax consequences for pension funds. Buy share repurchases foundations and trends r in finance by vermaelen, theo isbn. Theo vermaelen is a professor of finance at insead and the ubs chair in investment banking, endowed in. Jarrellthe relative signalling power of dutch auction and fixed price tender offers and open market share. Consistent with the hypothesis that firms use open market repurchases to reduce the agency costs of free cash flow, we find that repurchases are positively related to proxies for. Simple technical trading rules and the stochastic properties.
Josef lakonishok, theo vermaelenanomalous price behavior around repurchase tender offers. Pdf using recent data, we reject the hypothesis that the buyback anomalies first reported by lakonishok and vermaelen 1990, journal of finance. Exdividend days josef lakonishok telaviv university, telaviv, israel cornell university, ithaca, ny 148534201, usa theo vermaelen catholic university of leuven, 3000 leuven, belgium received september 1984, final version received october 1985 this paper investigates trading volume. Performance and strategic trading abstract during the 1980s, u. Other examples of delayed market reactions include ipos ritter, 1991, mergers agrawal, jaffe, and mandelker, 1992, proxy contests ikenberry and lakonishok, 1993, and spinoffs cusatis, miles, and woolridge, 1993. Pdf the nature and persistence of buyback anomalies.
Dec 26, 2008 theo vermaelen, professor of finance at insead, says this critique is misplaced and reflects a lack of understanding of what we teach in finance courses. Financial support was provided by the olin foundation. The paper was presented at the 1982 western finance association meetings. Lakonishok and theo vermaelen, market underreaction to open market share repurchases, journal of financial economics 39 1995. Users may download andor print one copy of any articles in lse research online to facilitate their private study or for noncommercial research. Brock and lebaron are from the university of wisconsin and lakonishok is from the university of illinois. Everyday low prices and free delivery on eligible orders. Special thanks for their insightful comments go to michael brennan and krishna ramaswamy.
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