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Dedman, Elisabeth, Hua, Shan and Kungwal, T (2021) Why Do UK Firms Repurchase Their Own Shares? International Journal of Banking, Accounting and Finance. ISSN 1755-3830 (In Press)

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Abstract

We examine the practice of share repurchases in the UK from 2000 to 2016 We find that an important regulatory reform in 2003, which relaxed previously strict rules about repurchases, was followed by a significant increase in repurchase activity by UK main-market listed firms We then examine the motivation for repurchases, testing several key hypotheses from prior literature. Our analysis of 6,228 firm years provides support, across both regulatory regimes, for both the free cash flow and the investment hypotheses. However, there are also changes in share repurchase motivations following the easing of restrictions. Important differences between UK and US payout practices are identified.

Item Type: Article
Additional Information: The final version of this article and all relevant information related to it, including copyrights, can be found on the publisher website.
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5410 Marketing. Distribution of products
Divisions: Faculty of Humanities and Social Sciences > Keele Business School
Depositing User: Symplectic
Date Deposited: 25 Feb 2022 13:11
Last Modified: 25 Feb 2022 13:11
URI: https://eprints.keele.ac.uk/id/eprint/10655

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