Do share repurchases facilitate movement toward target capital structure? International evidence

IF 2.1 2区 经济学 Q2 BUSINESS, FINANCE
Zigan Wang , Qie Ellie Yin , Luping Yu
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引用次数: 0

Abstract

We use a new international setting to test and strengthen identification of the “target leverage” hypothesis in the payout policy literature. We conduct a quasi-natural experiment induced by staggered share repurchase legalization in 17 economies and analyze its influences on leverage dynamics. After controlling for other repurchasing motives, firms under-leveraged before legalization are more likely to buy back shares immediately after legalization. Post-legalization repurchases also facilitate firms’ movement toward target leverage, especially when firms are under-leveraged. This facilitating effect is stronger under lower repurchasing restriction, higher dividend tax penalty, and lower financial constraint.

股票回购是否有助于实现目标资本结构?国际证据
我们利用一个新的国际环境来检验并加强对支付政策文献中 "目标杠杆 "假设的识别。我们在 17 个经济体进行了由交错股票回购合法化引发的准自然实验,并分析了其对杠杆动态的影响。在控制了其他回购动机后,合法化前杠杆率较低的公司更有可能在合法化后立即回购股票。合法化后的回购也会促进企业向目标杠杆率移动,尤其是在企业杠杆率不足的情况下。在回购限制较低、股息税惩罚较高和财务约束较低的情况下,这种促进作用更强。
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来源期刊
CiteScore
3.40
自引率
3.80%
发文量
59
期刊介绍: The Journal of Empirical Finance is a financial economics journal whose aim is to publish high quality articles in empirical finance. Empirical finance is interpreted broadly to include any type of empirical work in financial economics, financial econometrics, and also theoretical work with clear empirical implications, even when there is no empirical analysis. The Journal welcomes articles in all fields of finance, such as asset pricing, corporate finance, financial econometrics, banking, international finance, microstructure, behavioural finance, etc. The Editorial Team is willing to take risks on innovative research, controversial papers, and unusual approaches. We are also particularly interested in work produced by young scholars. The composition of the editorial board reflects such goals.
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