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Statistik › Noteringar, IPO:er och bolagshändelser › Buyback announcements

The buyback announcement pop has roughly halved since the 1990s

1994 to 2001: 2.00%+2.00%1994 to 20012002 to 2006: 1.19%+1.19%2002 to 20062007 to 2014: 1.24%+1.24%2007 to 2014

Five-day announcement abnormal return, days minus two to plus two, adjusted for industry, size and book to market. 11,795 US open-market repurchase announcements. The effect has shrunk but it has not vanished, which separates it from most of the other corporate events in this library.

Companies announcing an open-market repurchase used to gain 2.00% over the five days around the news. Across 11,795 announcements the figure fell to 1.24% in 2007 to 2014, and the pre-announcement run-up more than halved alongside it.

2.00%Five-day announcement abnormal return, 1994 to 2001
1.24%The same window in 2007 to 2014
13.25%Pre-announcement one-year abnormal return, 1994 to 2001, against 6.14% later
11,795Open-market repurchase announcements in the sample

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