Pia Helbing

finance seminar

Pia Helbing

University of Edinburgh
Timing matters: Further evidence on motives for repurchases and special dividends
Joint with
Seth Armitage, Ronan Gallagher

MEGA Salle Carine Nourry

MEGA - Salle Carine Nourry

Maison de l'économie et de la gestion d'Aix
424 chemin du viaduc
13080 Aix-en-Provence

Tuesday, April 11 2023| 2:30pm

Eric Girardin: eric.girardin[at]univ-amu.fr
Gaël Leboeuf: gael.leboeuf[at]univ-amu.fr
Christelle Lecourt: christelle.lecourt[at]univ-amu.fr


We compare the importance of opportunities for market timing with incentives to manage EPS, in decisions to repurchase. We distinguish between repurchases which are done to distribute cash (payout-related) and those which are conducted to provide shares for re-issue to staff (pay-related). Firms are more likely to pay out cash via a repurchase when timing opportunities are compelling and will opt for a special dividend otherwise. Incentives to manage EPS, on the other hand, explain less of the choice of repurchase vs. special dividend. Pay-related repurchases are likewise associated with compelling timing opportunities, and thus timing considerations also help explain decisions to repurchase shares for issue to staff.