Filetype pdf open market stock repurchase signaling financial management
Clearly label each answer. And, as we saw in Part I. Rights Offerings WEB EXTENSION18A WEB EXTESIO18A Rights Offerings As we discussed in Chapter 5, common stockholders often have the right, called the preemptive right, to purchase any additional shares sold by the firm. The subsection concludes by considering a potential benefit to managers of signaling underpricing with an OMR. One might believe that managers who announce an OMR and do not repurchase any shares suffer some form of reputational cost unless the failure to repurchase can be explained by, for example, a sharp increase in the price immediately after the announcement. The Credibility of Open Market Share Repurchase Signaling By Ilona Babenko , Yuri Tserlukevich ,