TY  - JOUR
TI  - Market Underreaction to Open Market Share Repurchases
T2  - Journal of Financial Economics
IS  - 2-3
KW  - market efficiency hypothesis
KW  - stock repurchase
KW  - underreaction
AB  - We examine long-run firm performance following open market share 
repurchase announcements, 1980-1990. We find that the average 
abnormal four-year buy-and-hold return measured after the initial 
announcement is 12.1%. For ‘value' stocks, companies more 
likely to be repurchasing shares because of undervaluation, the 
average abnormal return is 45.3%. For repurchases announced by 
‘glamour' stocks, where undervaluation is less likely to be an 
important motive, no positive drift in abnormal returns is observed. 
Thus, at least with respect to value stocks, the market errs in its 
initial response and appears to ignore much of the information 
conveyed through repurchase announcements 
AU  - Ikenberry, David L.
AU  - Lakonishok, Josef
AU  - Vermaelen, Theo
UR  - http://ecsocman.hse.ru/text/19101638/
PY  - 1995
SP  - 181-208
M2  - 181
VL  - 39
SN  - 
N1  - 
LA  - EN
CY  - 
PB  - 
M3  - 
LB  - 
VL  - 
ER  -