Buying High and Selling Low: Stock Repurchases and Persistent Asymmetric Information
研究发现，当公司可能多次进行资本市场交易时，信息不对称会导致部分公司在增发前回购股票以改善增发条件，而另一些公司则直接从回购中获利。
Share prices generally fall when a firm announces a seasoned equity offering (SEO). A standard explanation is that an SEO communicates negative information to investors. We show that if repeated capital market transactions are possible, this same asymmetry of information between firms and investors implies that some firms also repurchase shares in equilibrium. A subset of these firms directly profit from repurchases, while other firms repurchase in order to improve the terms of a subsequent SEO. The possibility of repurchases reduces both SEOs and investment. Overall, our analysis highlights the importance of analyzing SEOs and repurchases in a unified framework. Received June 28, 2014; accepted September 14, 2015 by Editor David Hirshleifer.