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Bridge over ocean
1 November 2010 Financial Analysts Journal Volume 66, Issue 6

Not All Buybacks Are Created Equal: The Case of Accelerated Stock Repurchases

  1. Allen Michel
  2. Jacob Oded
  3. Israel Shaked

The authors documented the characteristics and market performance of ASR (accelerated share repurchase) stock. They found that post-announcement ASR stock performance is poor, unlike that documented in the literature for other repurchase methods, which implies that ASRs do not signal undervaluation, a frequently suggested motivation for repurchases.

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