The Buyback Indicator Still Going Strong?
March 16, 2007 - Buybacks-Secondaries
Are stock buybacks still good indicators of future strong returns, or have investors driven this anomaly from the market? If they still work, why? In their January 2007 paper entitled “The Nature and Persistence of Buyback Anomalies”, Urs Peyer and Theo Vermaelen investigate whether market recognition has eliminated or attenuated the stock repurchase anomaly. Using a sample of 3,481 repurchase announcements spanning 1991-2001, they find that: Keep Reading