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Identifier to cite or link to this item: https://hdl.handle.net/10086/18430

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Title
Ownership structure and incentives to stock repurchase
Creator
Creator Name
Teng, Min Teng, Min
Affiliation
Affiliation Name
Tokyo Institute of Technology
Creator Name
Hachiya, Toyohiko Hachiya, Toyohiko
蜂谷, 豊彦 蜂谷, 豊彦
Affiliation
Affiliation Name
Hitotsubashi University
Key Word
Ownership structure
Stock repurchase
Capital structure
Undervaluation
Takeover determent
Abstract
This paper examines whether and how ownership structure affects stock repurchase by looking at the incentives to adjust capital structure and signal undervaluation through repurchasing. We find that a strong monitoring structure motivates the adoption of an optimal capital structure with which firms maximize corporate value. We also find that firms with a strong monitoring structure tend to initiate a repurchase plan as a value signal; on the other hand, entrenched firms are more sensitive to market performance and tend to have more stock repurchase if they are undervalued. Additionally, we find by looking at the motivation for sending a value-signal that a U-shaped relationship exists between stock repurchase and ownership structure.
Publisher
Graduate School of Commerce and Management Center for Japanese Business Sutdies, Hitotsubashi University
Issued Date
2010-04
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Working paper ; No. 110
Appears in Collections
Working Paper Series / Center for Japanese Business Studies
URL
https://hdl.handle.net/10086/18430