Comprehensive studies on share repurchase

2022 Fiscal Year Final Research Report

• Project/Area Number: 19K01768
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07060:Money and finance-related
• Research Institution: Kansai University
• Principal Investigator: Ota Koji 関西大学, 商学部, 教授 (70366839)
• Project Period (FY): 2019-04-01 – 2023-03-31
• Keywords: 自社株買い / ToSTNeT買付 / シグナリング強度調整仮説

Outline of Final Research Achievements

During the 2019-2022 period of this research grant, I published a total of seven papers, including four papers on share repurchase and three papers on accounting information.
In particular, the four papers on share repurchase investigated 1) the reputation effects concerning repurchase program completion rates in Japan; 2) the reality of share buybacks via ToSTNeT, which is a unique method of acquiring own shares in Japan; 3) questionable share buyback transactions exploiting the time constraints of ToSTNeT buybacks and the inadequacies in the current system; and 4) the signaling strength adjustment behavior of managers who are announcing share buybacks by Open Market Repurchase and buyback-unrelated bad news simultaneously. Through the investigation of these studies, I have found some evidence that is unique to Japanese firms.

Free Research Field

コーポレートファイナンス

Academic Significance and Societal Importance of the Research Achievements

本申請研究から生み出された自社株買いに関する一連の研究により，わが国企業の実施する自社株買いの実態の一端を明らかにすることができた。具体的には，わが国独自の自己株式取得方法であるToSTNeT買付による自社株買いには制度にループホールがあるということや，Open Market Repurchaseを公表する企業の経営者はシグナリングの強度を調整することによって市場に正しい情報を伝達しようとしているということが明らかになった。