The option and decision to repurchase stock

Research output: Contribution to journalArticle



Open‐market repurchase programs provide firms with the flexibility to manage the cash and risk aspects of their operations. We examine at which stage cash and risk matter in the typical stages of a repurchase program: announcement, implementation, and withdrawal. Cash and risk considerations appear to matter only at the implementation stage, and partially negate the traditional signaling effect around program announcement.

Bibliographic note

Sonika, R. , Carline, N. F. and Shackleton, M. B. (2014), The Option and Decision to Repurchase Stock. Financial Management, 43: 833-855. doi:10.1111/fima.12054


Original languageEnglish
Pages (from-to)833-855
JournalFinancial Management
Issue number4
Early online date17 Feb 2014
Publication statusPublished - 18 Nov 2014