Let me buy you out of your misery
Article Abstract:
Some companies find that they do not derive any benefits from listing on the stock market. If their business is not highly rated by the market, then they will be unable to raise money by issuing new shares. They may decide to undertake a share buy-back, an approach which can cause difficulties for shareholders. Some institutional investors may be quite willing to divest themselves of a particular shareholding if the business is performing badly, but are likely to be suspicious about the management's motives. It is important to check how many shares the management has on its side and to consider the feasibility of profit forecasts.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Targeted share repurchases, free cash flows, and shareholder wealth: additional evidence
Article Abstract:
Studies have proven that targeted share repurchases do reduce surplus cash, thereby boosting shareholder wealth by paring down agency costs of free cash flows. Furthermore, the valuation results of targeted share repurchase declarations are positively linked to the amount of the companies' pre-repurchase free cash flows and pre-repurchase accumulation of liquid assets. It was also established that the level of liquid assets falls for a definite period of time after the share repurchases.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1997
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