Corpus ID: 167882496

Essays in Empirical Corporate Finance

  title={Essays in Empirical Corporate Finance},
  author={Zicheng Lei},
The first essay (Chapter 2) investigates debt-financed share repurchases. We find that debt-financed share buybacks generate positive short-term and long-run abnormal stock returns. Leveraged buyback firms have more debt capacity and lower growth prospects ex ante, increase leverage and reduce investments more sharply ex post than cash-financed buyback firms. Firms that are over-levered ex-ante are associated with lower returns and real investments following leveraged buybacks. The lower… Expand


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