Economic Sources of Gain in Stock Repurchases
研究股票回购的三种经济动机：错误定价、释放自由现金流和提高杠杆，通过分析市场初始反应和长期表现，发现长期回报最支持错误定价假说，部分支持自由现金流假说，杠杆假说证据不足。
Abstract Previous studies offer a mixed understanding of the economic role of stock repurchases. This paper investigates three key economic motivations—mispricing, disgorging free cash flow, and increasing leverage—by evaluating cross-sectional differences in both the initial market reaction and long-run performance. The initial reaction provides some support for the mispricing story. However, subsequent earnings-related information shocks suggest that the initial market reaction is incomplete and that long-run performance may be informative. The long-horizon return evidence is most consistent with the mispricing hypothesis and, to some degree, the free cash flow hypothesis. We find little support for the leverage hypothesis.