Actual Share Repurchases and Liquidity: Evidence from Thailand
International Research Journal of Finance and Economics, Issue 104, pp.42-50
9 Pages Posted: 30 Nov 2012 Last revised: 26 Apr 2017
Date Written: January 1, 2013
Abstract
This paper examines the impacts of actual share repurchases on stock liquidity of companies listed on the Stock Exchange of Thailand (SET) over 2001-2010. The results show that bid-ask spreads are narrower, price impact is lower, and turnover is higher on repurchase days compared to those on non-repurchase days. In addition, the number of actual shares repurchased is found to be negatively related to bid-ask spreads and price impact, and positively related to turnover. Overall, the findings clearly indicate that actual share repurchases have positive impacts on stock liquidity.
Keywords: Share repurchases, liquidity, bid-ask spread, price impact, turnover, Thailand
JEL Classification: G14, G35
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay?
By Eugene F. Fama and Kenneth R. French
-
Dividends, Share Repurchases, and the Substitution Hypothesis
By Gustavo Grullon and Roni Michaely
-
Payout Policy in the 21st Century
By Alon Brav, John R. Graham, ...
-
Payout Policy in the 21st Century
By Alon Brav, Campbell R. Harvey, ...
-
Financial Flexibility and the Choice between Dividends and Stock Repurchases
By Clifford P. Stephens, Murali Jagannathan, ...
-
By Roni Michaely and Franklin Allen
-
By Joan Farre-mensa, Roni Michaely, ...
-
Payout Policy in the 21th Century: The Data
By Alon Brav, Campbell R. Harvey, ...
-
A Catering Theory of Dividends
By Malcolm P. Baker and Jeffrey Wurgler
-
A Catering Theory of Dividends
By Malcolm P. Baker and Jeffrey Wurgler