Liquidity, Ownership Structure, and Market Share Repurchases: Evidence from Japan
22 Pages Posted: 22 Aug 2011
Date Written: August 22, 2011
Our empirical results show that the companies with higher market liquidity and shorter investment horizons by their shareholders tend to initiate market share repurchases. Such companies also have a higher value and percentage of repurchases with respect to total payout. Japanese companies’ unique shareholder ownership structure should have an influence on payout policies.
Keywords: Share repurchase, liquidity, investment horizon, ownership structure
JEL Classification: G10, G14, G35
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