Date of Award
Bachelor of Arts
This study examines the performance of share repurchases completed by corporate managers, and compares the implied performance of the purchases to a mythical alternative investment in the S&P 500 index, and the company’s industry sector. The “repurchase” portfolio benefits from managers’ significant information advantage over all other market participants. The data was collected from Compustat, and return, risk and risk adjusted metrics were calculated to provide a comparison of the two portfolios. Overall, the portfolio of repurchasing companies experienced lower returns than the broad index and respective industry sector, but the volatility for repurchasers was lower as well.
Lorka, Michael, "Do Corporate Managers Time Stock Repurchases Effectively?" (2017). Financial Analyst. 5.