Repurchases and intended program length

摘要

This paper examines whether a relationship between the intended duration specified in an on-market repurchase announcement and completion rates exists. A key finding is that intended program length is negatively correlated with completion rates, suggesting that firms are more committed to follow thru with their repurchase targets the shorter the period of time indicated in an announcement. Further, intended program length is negatively related with announcement returns, particularly so for firms that are likely to be mispriced, suggesting that the share market considers the announcing firm as more credible the shorter the period of time indicated.