Figures & data
Table 1. Summary statistics of the sample. This table reports the summary statistics of our sample across years. TARGETNO is the number of shares a company plans to repurchase; ACTUALNO is the number of shares actually repurchased. TARGET is the target ratio, calculated as the ratio of the number of shares planned to purchase and the number of firm’s outstanding shares. ACTUAL is the actual buyback ratio, measured by the number of shares actually repurchased divided by the number of outstanding shares. COMPLETE is the completion ratio, calculated as the number of shares actually repurchased divided by the number of shares planned to repurchase. No.ANNOUNCE is the number of share
Table 2. Insider trading surrounding announcement. This table reports the insider trading before the repurchase announcement month (month −1), in the announcement month (month 0), and the month after the repurchase announcement (month +1). NS indicates net insider selling and NB indicates net insider buying
Table 3. Short-term market reaction. The table presents short-term cumulative abnormal returns for different event windows around repurchase announcements: [−40, −3], [1, −1], [0, 5], [6, 10], and [11, 20] days. Panel A reports results for the entire sample while Panel B shows the performance for non-buyback versus buyback announcements. *, **, and *** indicate significance at the 10%, 5%, and 1% level, respectively
Table 4. Cumulative abnormal returns conditional on insider trading prior to the announcement month.
Table 5. Post-announcement operating performance. This table reports the unadjusted and adjusted operating performance for one to twelve quarters after the repurchase announcements
Table 6. Changes in adjusted operating performance and insider trading. This table shows the changes in adjusted operating performance (DAOP) for each group of repurchase classified by post-announcement insider trading. NSA (NBA) is net insider selling (buying) in the event month and the following month; Neutral is the neutral insider trading in the same period. DAOP40, DAOP80, and DAOP120 are changes in adjusted operating performance from quarter 0 to 4, 8, and 12, respectively
Table 7. Multivariate regression of change in adjusted operating performance. The table reports the regression results for change in adjusted operating performance up to one, two, and three years (DAOP40, DAOP80, and DAOP120) from the event month on NSA and NBA. The variables are defined in Appendix 1. Year dummies are included in all regressions. The numbers in [] are z-statistics. *, **, and *** indicates significance at the 10%, 5%, and 1% level, respectively
Table 8. Long-term stock return performance and insider trading. This table reports market adjusted and benchmark’s portfolio adjusted buy-and-hold returns for three different groups of insider trading after the repurchase announcements: net insider selling (NSA), net insider buying (NBA), and Neutral. In Panel A, we report results using the market-adjusted buy-and-hold return while in Panel B, we report results with abnormal returns against the benchmark portfolio. *, **, and *** indicate significance at the 10%, 5%, and 1% level, respectively
Table 9. Multivariate regression of long-term performance. The table reports the regression results for market adjusted buy-and-hold return up to one, two, and three years from the event month on NSA and NBA. The variables are defined in Appendix 1. Year dummies are included in all regressions. The numbers in [] are t-statistics. *, **, and *** indicates significance at the 10%, 5%, and 1% level, respectively
Table 10. Determinants of net insider selling after repurchase announcement. The table reports the results of logistic regressions for the probability of net insider selling after repurchase announcements (NSA). NBB is the net insider buying before the repurchase announcements. The variables are defined in Appendix 1. Year dummies are included in all regressions. The coefficients are odds ratios. The numbers in [] are z-statistics. *, **, and *** indicate significance at the 10%, 5%, and 1% level, respectively
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