The Timing and Source of Long-Run Returns Following Repurchases

Leonce Bargeron, Alice Bonaime, Shawn Thomas

Research output: Contribution to journalArticlepeer-review

19 Scopus citations


This paper investigates the timing and source of anomalous positive long-run abnormal returns following repurchase authorizations. Returns between program authorization and completion announcements are indistinguishable from 0. Abnormal returns occur only after completion announcements. Long-run returns are largely attributable to announcement returns at subsequent authorizations and takeover attempts; that is, anomalous post-authorization returns are not persistent drifts but rather step functions. These findings have important implications for prior papers examining this most persistent and widespread anomaly. Further, our results serve to refocus the search for a rational explanation for the anomaly on subsequent repurchase announcements and takeover bids.

Original languageEnglish (US)
Pages (from-to)491-517
Number of pages27
JournalJournal of Financial and Quantitative Analysis
Issue number2
StatePublished - Apr 1 2017
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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