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Identifier to cite or link to this item: https://hdl.handle.net/10086/28621

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Title
Market Overreaction to Bad News and Share Repurchase: Evidence from Japan
Creator
Creator Name
SHIRABE, Yuji SHIRABE, Yuji
調, 勇二 調, 勇二
Affiliation
Affiliation Name
Hitotsubashi University
Key Word
share repurchase
management earnings forecasts
market reaction
Abstract
We examine the relationship between the market reaction to management earnings forecasts and subsequent share repurchase announcements. Our results show that repurchase firms experience a larger market reaction to bad news of management earnings forecasts than non-repurchase firms before repurchase announcements. By contrast, there is little difference in the market reaction to good news between repurchase firms and non-repurchase firms. Additionally, little difference exists in the information content of management forecasts between repurchase firms and non-repurchase firms. In summary, our results imply that Japanese companies announce share repurchases in response to market overreactions to bad news in management earnings forecasts.
Publisher
Management Innovation Research Center, Graduate School of Commerce and Management, Hitotsubashi University
Issued Date
2017-06
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Working paper ; No. 215
Number of Pages
16
Appears in Collections
Working Paper Series / Management Innovation Research Center
URL
https://hdl.handle.net/10086/28621