Share Repurchases, the Clustering Problem, and the Free Cash Flow Hypothesis
研究实际股票回购公告的市场反应，发现市场反应正面，尤其对过度投资企业更有利，支持回购减少自由现金流代理成本的假说。
We examine the market reaction to announcements of actual share repurchases, events that cluster both within and across firms. Using a multivariate regression model, we find that the market reacts positively to the events, indicating that these announcements provide additional information to that contained in the initial repurchase intention announcements. Further, the market response is especially favorable for firms with overinvestment problems as measured by Tobin's q, and is not related to signaling costs as measured by the size of the repurchase. Our findings generally support the hypothesis that share repurchases reduce the agency costs of excessive free cash flow .