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Record W4379911967 · doi:10.54254/2754-1169/5/20220062

Impact of Stock Repurchase on the Capital Markets

2023· article· en· W4379911967 on OpenAlexaff
Wanying Mao

Bibliographic record

VenueAdvances in Economics Management and Political Sciences · 2023
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicFinancial Reporting and Valuation Research
Canadian institutionsSimon Fraser University
Fundersnot available
KeywordsEarnings per shareBusinessReturn on equityReturn on assetsFinanceLeverage (statistics)Share repurchaseEquity (law)Monetary economicsShares outstandingEarningsStock exchangeEconomicsShareholderCorporate governance

Abstract

fetched live from OpenAlex

This study intends to examine, from an economic and accounting standpoint, how the share repurchase procedure affect financial markets by specifically testing their effects on the financial performance of the specific companies. The OLS regression analysis was used on 66 companies that were traded on the American Stock Exchange between 2009 and 2020 as part of the study sample. The results reveal that share repurchases improve financial results, as evidenced by return on equity (ROE) and Added Economic Value (EVA). The results, however, show that share repurchases have little effect on the return on assets (ROA). The study found that the management's justifications for share buybacks affect a company's financial success. The study also found that the management's aim to produce a cash surplus improves the company's financial performance. The management objective of increasing earnings per share, which also improves the firm's financial success, was found to be one of the most significant motivations for the company to repurchase shares, according to the study. The study also showed that share repurchases significantly outperform returns on assets or returns on equity in terms of the Economic Value Added (EVA), one of the most important measures of financial success. The study, however, found little proof that the companies' share repurchases caused by higher financial leverage have an effect on their financial performance. This research, therefore, provided an insight on how share purchases affect the capital markets is dependent on the source of the surplus cash, and relatedly, share purchases through improved earnings per share increases the desirability of the company from their improving their financial standpoint.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.579
Threshold uncertainty score0.204

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.047
GPT teacher head0.354
Teacher spread0.307 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations2
Published2023
Admission routes1
Has abstractyes

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