2020 Fiscal Year Research-status Report
Does Reputation Matter? Evidence from Share Repurchases
| Project/Area Number |
19K13866
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| Research Institution | Waseda University |
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Principal Investigator |
ラオ デービッド 早稲田大学, 商学学術院(経営管理研究科), 准教授(任期付) (70835214)
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| Project Period (FY) |
2019-04-01 – 2022-03-31
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| Keywords | Corporate Finance |
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| Outline of Annual Research Achievements |
This paper examines whether the stock market considers the firm's reputation established through a history of management earnings forecasting when it evaluates open market repurchase announcements. We refer to this established reputation as the firm's “forecast reputation”. We find that while the stock market considers the firm's “repurchase reputation” (proxied by prior repurchase completion rates), it also considers the firm's forecast reputation established from the accuracy of prior management earnings forecasting, suggesting a spillover effect of forecast reputation. Further, interaction test between the two reputation variables reveals that the market reacts more to the firm's forecast reputation when its repurchase reputation is low.
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| Current Status of Research Progress |
Current Status of Research Progress
1: Research has progressed more than it was originally planned.
Reason
The paper has been published in Journal of Corporate Finance due to our hard work. We are now working on new research projects using the research grant and it is submitted to a high quality journal for review.
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| Strategy for Future Research Activity |
We are now working on new research projects using the research grant and it is submitted to a high quality journal for review. Further, we are working on other revision work for other high quality journals.
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| Causes of Carryover |
I am planning to use research grant on buying equipment (such as laptop computer), buying data for research and possibly invite my co-authors to Japan to do joint research.
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