Can Institutional Shareholding Affect the Timing of Stock Buybacks? — Evidence from Stock Buybacks of A-share Listed Companies
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v5i3.2379
Abstract
This paper selects China's A-share market share repurchase data during the period 2007-2022 as a sample, and takes the actual share repurchase behaviour of A-share listed companies as the research object, it constructs a multiple regression model to empirically test the effect of institutional investor's stockholding on the timing ability of corporate share repurchase. Specifically, the higher the proportion of institutional shareholding, the stronger the firm's stock timing ability; Heterogeneity analyses show that institutional investors in firms with lower Tobin's Q can enhance the stock repurchase timing ability more significantly; overseas experience of executives does not enable institutional investors to help firms to enhance the stock repurchase timing ability significantly. This paper provides theoretical support for listed companies to analyse and judge the influencing factors of market timing, and enriches the connotation and utility of market timing theory.
Keywords
stock buybacks; market timing theory; institutional shareholdings
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[2] HUANG H, XIAO C S. Timing ability and influencing factors of listed compa-nies' stock buyback. Research on Financial Issues. 2016;(2):33-39.
[3] Jiang Y B, Qu H M. Research on Market Timing of Stock Repurchase and Its Influencing Factors. Financial Research. 2015;(04):78-86.
[4] Adri De Ridder. Additional evidence on the frequency of share repurchases and managr-ial timing. The Quarterly Review of Economics and Finance. 2015;56:154-164.
[5] Douglas O. Cook, Weiwei Zhang. CEO option incentives and corporate share repurchases. International Review of Economics &. Finance. 2022;78:355-376.
[6] Wang Y, Guo Z G. Institutional investor shareholding and corporate total factor productivity:effective or ineffective monitoring. Journal of Shanxi University of Finance and Economics. 2021;43(02):113-126.
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