TY  - JOUR
AU  - Ikenberry,David
AU  - Lakonishok,Josef
AU  - Vermaelen,Theo
TI  - Stock Repurchases in Canada:  Performance and Strategic Trading
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7325
PY  - 1999
Y2  - August 1999
UR  - http://www.nber.org/papers/w7325
L1  - http://www.nber.org/papers/w7325.pdf
N1  - Author contact info:
David Ikenberry
Office of the Dean 
Leeds School of Business
University of Colorado
Office Koelbel S310
Boulder, CO 80309-0584
Tel: 303-492-1809
Fax: 303-492-7676
E-Mail: David.Ikenberry@Colorado.edu

Josef Lakonishok
University of Illinois, Department of Finance
College of Commerce & Business Administration
1206 S. Sixth Street
Champaign, IL 61820
Tel: 217/333-7185
Fax: 217/244-1151
E-Mail: jlakonishok@yahoo.com
AB  - During the 1980s, U.S. firms that announced stock repurchase programs earned favorable long-run returns.  Recently, concerns have been raised regarding the robustness of these findings. This comes at a time of explosive worldwide growth in the adoption of repurchase programs.  This study provides out-of-sample evidence for 1,060 Canadian repurchase programs announced between 1989 and 1997.  As in the U.S., the Canadian stock market seems to discount the information contained in repurchase announcements.  Value stocks announcing repurchase programs have particularly favorable returns.  Canadian law requires companies to report how many shares they repurchase on a monthly basis.  We find that managers are sensitive to mispricing as completion rates are higher in cases where undervaluation may be a more important factor.  Moreover, trades are linked to price movements; managers buy more shares when prices fall and reduce their buying when prices rise.
ER  -