원문정보
초록
영어
In this paper, we analyze share repurchase rumors comparing them with share repurchase announcements in the period from 1999 to 2010. We found the empirical evidence that share repurchase rumors exhibit positive signaling effect comparable to the announcement effect of share repurchases. We then extend the existing theory of rumors (information transmission) by introducing the concept of publication status. Publication of rumors changes their status from private to public information. This transition results in smaller abnormal returns and acceleration in uninformed liquidity trading. In addition, empirical evidence suggests that the stock market differentiates information from different publication sources, e.g., major news providers versus self reporting company presses.
목차
I. Introduction
II. Rumors and the publication effects
A. Definition of Rumor
B. Publication effects
III. Literature review and hypothesis
A. Prior studies on rumor and motivation of the study
B. Prior studies on share repurchase
C. Hypotheses
IV. Data and methodology
A. Data
B. Methodology
V. Empirical results
VI. Conclusion
Reference
Table