재무연구 제 권 호 (2008년 5월)
Asian Review of Financial Research, Vol., No..
pp.94~134
pp.94~134
Who Repurchases Shares in Major Countries? : Evidence of Excess Cash Hypothesis
Bong Soo Lee Department of Finance, College of Business, Florida State University, Tallahassee, Florida.
Jungwon Suh Daehyun-dong, Seodaemun-gu, Seoul, Korea
In this study, we examine the patterns and determinants of share repurchases using firm-level data from seven major countries?Australia, Canada, France, Germany, Japan, the U.K., and the U.S.?over the period 2000-2005. We find that non-U.S. firms do not repurchase shares as much as U.S. firms do. However, it appears that a common set of patterns applies to the payout behavior of both U.S. and non-U.S. firms. For example, across countries, firms use share repurchases as a flexible means of distributing cash. Also, firms generally do not use repurchases as a substitute for dividends. Further, there is strong evidence that, across countries, repurchasing firms have unique characteristics, depending on whether or not they also pay dividends. Finally, our multinomial logit and Tobit regressions show that, across countries, excess cash is a key determinant of share repurchases.
Bong Soo Lee
Jungwon Suh
In this study, we examine the patterns and determinants of share repurchases using firm-level data from seven major countries?Australia, Canada, France, Germany, Japan, the U.K., and the U.S.?over the period 2000-2005. We find that non-U.S. firms do not repurchase shares as much as U.S. firms do. However, it appears that a common set of patterns applies to the payout behavior of both U.S. and non-U.S. firms. For example, across countries, firms use share repurchases as a flexible means of distributing cash. Also, firms generally do not use repurchases as a substitute for dividends. Further, there is strong evidence that, across countries, repurchasing firms have unique characteristics, depending on whether or not they also pay dividends. Finally, our multinomial logit and Tobit regressions show that, across countries, excess cash is a key determinant of share repurchases.
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