Bonaime, Alice A.
[Verfasser:in]
;
Hankins, Kristine Watson
[Sonstige Person, Familie und Körperschaft];
Jordan, Bradford D.
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Journal of Corporate Finance, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 2, 2016 erstellt
Beschreibung:
Over the last two decades, share repurchases have emerged as the dominant payout channel, offering a more flexible means of returning excess cash to investors. However, little is known about the costs associated with payout-related financial flexibility. Using a unique identification strategy, we document a significant cost. We find that actual repurchase investments underperform hypothetical investments that mechanically smooth repurchase dollars through time by approximately two percentage points per year on average. This cost of financial flexibility is correlated with earnings management, managerial entrenchment, and less institutional monitoring