Management choice of buyback method: Australian evidence

Accounting and Finance

Volumn 50, Issue 4, 2010, Pages 767-782

  Brown, Christine ^a   Norman, Daniel ^a  

^a UNIVERSITY OF MELBOURNE   (Australia)

Author keywords

Buyback; Off market; On market; Repurchase; Taxation

Indexed keywords

EID: 78149245045     PISSN: 08105391     EISSN: 1467629X     Source Type: Journal    
DOI: 10.1111/j.1467-629X.2010.00349.x     Document Type: Article

References (36)

1. Anderson, A., and E. Dyl, 2004, Determinants of premiums on self-tender offers, Financial Management 33, 25-45.
2. Australian Government Board of Taxation, 2007, Review of the taxation treatment of off-market share buybacks. Available from URL:
3. Australian Government Board of Taxation, 2009, Review of the taxation treatment of off-market share repurchases. A report to the Treasurer. ISBN 978-0-642-74500-2. Available from URL:
4. Balachandran, B., and R. Faff, 2004, Special dividends, bonus issues and on-market buybacks: signalling in an imputation environment, Finance Letters 2, 23-26.
5. Balachandran, B., K. Chalmers, and J. Haman, 2008, On-market share buybacks, exercisable share options and earnings management, Accounting and Finance 48, 25-49.
6. Barberis, N., and M. Huang, 2001, Mental accounting, loss aversion, and individual stock returns, Journal of Finance 56, 1247-1292.
7. Barclay, M., and C. Smith Jr, 1988, Corporate payout policy: cash dividends versus open-market repurchases, Journal of Financial Economics 22, 61-82.
8. Brav, A., J. Graham, C. Harvey, and R. Michaely, 2005, Payout policy in the 21st century, Journal of Financial Economics 77, 483-527.
9. Brockman, P., and D. Y. Chung, 2001, Managerial timing and corporate liquidity: evidence from actual share repurchases, Journal of Financial Economics 61, 417-448.
10. Brown, C., 2007, The announcement effects of off-market share repurchases in Australia, Australian Journal of Management 32, 369-385.
11. Brown, C., and K. Davis, 2009, Share buybacks and shareholder equity, Working paper (The Department of Finance, The University of Melbourne, Melbourne).
12. Brown, C., and K. Efthim, 2005, Effect of taxation on equal access share buybacks in Australia, International Review of Finance 5, 199-218.
13. Cannavan, D., F. Finn, and S. Gray, 2004, The value of imputation tax credits in Australia, Journal of Financial Economics 73, 167-197.
14. Cook, D., L. Krigman, and J. Leach, 2003, An analysis of SEC guidelines for executing open-market repurchases, The Journal of Business 76, 289-316.
15. Cook, D., L. Krigman, and J. Leach, 2004, On the timing and execution of open-market repurchases, The Review of Financial Studies 17, 463-498.
16. Daniel, K. D., D. Hirshleifer, and A. Subrahmanyam, 2001, Overconfidence, arbitrage, and equilibrium asset pricing, Journal of Finance 56, 921-965.
17. Dittmar, A., 2000, Why do firms repurchase stock? The Journal of Business 73, 331-355.
18. Fenn, G., and N. Liang, 2001, Corporate payout policy and managerial stock incentives, Journal of Financial Economics 60, 45-72.
19. First Corporate Law Simplification Act No. 115, 1995. Schedule 1 and 2: share buy-back amendments. Australian Federal Legislation.
20. Grullon, G., and R. Michaely, 2002, Dividends, share repurchases, and the substitution hypothesis, Journal of Finance 57, 1649-1684.
21. Grullon, G., and R. Michaely, 2004, The information content of share repurchase programs, Journal of Finance 59, 651-680.
22. Handley, J., and K. Maheswaran, 2008, A measure of the efficacy of the Australian imputation tax system, The Economic Record 84, 82-94.
23. Hatakeda, T., and N. Isagawa, 2004, Stock price behaviour surrounding stock repurchase announcements: evidence from Japan, Pacific-Basin Finance Journal 12, 271-290.
24. Income Tax Assessment Act 1997.
25. Jagannathan, M., C. Stephens, and M. Weisbach, 2000, Financial flexibility and the choice between dividends and stock repurchases, Journal of Financial Economics 57, 355-384.
26. Jensen, M., 1986, Agency costs of free cash flow, corporate finance and takeovers, The American Economic Review 76, 323-329.
27. Lakonishok, J., and T. Vermaelen, 1990, Anomalous price behaviour around repurchase tender offers, Journal of Finance 45, 455-477.
28. Lamba, A. S., and I. Ramsay, 2005, Comparing share buybacks in highly regulated and less regulated market environments, Australian Journal of Corporate Law 17, 261-280.
29. Lie, E., 2002, Do firms undertake self-tender offers to maximize capital structure? The Journal of Business 79, 609-639.
30. Louis, H., and H. White, 2007, Do managers intentionally use repurchase tender offers to signal private information? Evidence from firm financial reporting behaviour, Journal of Financial Economics 85, 205-233.
31. Mitchell, J. D., and G. V. Dharmawan, 2007, Incentives for on-market buybacks: evidence from a transparent buy-back regime, Journal of Corporate Finance 13, 146-169.
32. Mitchell, J., and P. Robinson, 1999, Motivations of Australian listed companies effecting repurchases, Abacus 35, 91-119.
33. Mitchell, J., G. Dharmawan, and A. Clarke, 2001, Managements' views on share buy-backs: an Australian survey, Accounting and Finance 41, 93-129.
34. Mitchell, J. D., H. Y. Izan, and R. Lim, 2006, Australian on-market buy-backs: an examination of valuation issues, Multinational Finance Journal 10, 43-79.
35. Rau, P., and T. Vermaelen, 2002, Regulation, taxes, and share repurchases in the United Kingdom, The Journal of Business 75, 245-282.
36. Weisbenner, S., 2000, Corporate share repurchases in the 1990s: what role do stock options play? Federal Reserve Board Working Paper.