Optimal execution of open-market stock repurchase programs

@inproceedings{Odeda2015OptimalEO,
  title={Optimal execution of open-market stock repurchase programs},
  author={Jacob Odeda},
  year={2015}
}
  • Jacob Odeda
  • Published 2015
This paper formalizes the following intuition about open-market share repurchases. Firms do open-market share repurchases to return free cash, which would otherwise be wasted. However, when the firm goes to buy its own shares with this cash, it has inside information and hence the actual execution is characterized by adverse selection. The market knows that… CONTINUE READING