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SUMMARY:CANCELLED The Dynamics of Stock Repurchases  - Grzegorz Pawlina (L
 ancaster University)
DTSTART:20231123T130000Z
DTEND:20231123T140000Z
UID:TALK202357@talks.cam.ac.uk
CONTACT:Cerf Admin
DESCRIPTION:We develop a model of the timing of share repurchases within a
  duopolistic industry to analyze the dynamics of share repurchases in the 
 context of the ‘peer effect’ documented\nin the extant empirical liter
 ature. Share repurchase decisions are taken as part of a broader liquidity
  management policy but also take into account i) the firm’s financial\nr
 esources needed to invest in a potential growth opportunity\, and ii) the 
 feedback effect of the competitor’s investment threat on the firm’s wi
 llingness to hold cash to respond\nto such a threat. We derive the equilib
 rium timing of such strategic repurchases of both firms and generate a num
 ber of empirical predictions regarding the expected\nstrength of the peer 
 effect. Subsequently\, based on the universe of Compustat firms from 1971-
 2019\, we find empirical support for the key model predictions: the peer e
 ffect is weakened by the degree of product market competition\, financial 
 constraints\, and stock illiquidity. Finally\, we also present evidence of
  several cross-effects that are\nconsistent with model predictions.
LOCATION:CANCELLED
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