2022 Fiscal Year Annual Research 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 (70835214)
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| Project Period (FY) |
2019-04-01 – 2023-03-31
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| Keywords | Share buybacks / Corporate Finance / Reputation / Spillover effect / Stock market reaction |
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| Outline of Annual Research Achievements |
Using Japanese data, I examine whether the stock market considers the firm's reputation established through a history of management earnings forecasting when it evaluates open market repurchase announcements. I refer to this established reputation as the firm's "forecast reputation", and I find that while the stock market considers the firm's "repurchase reputation" (proxied by prior repurchase completion rate), it also considers the firm's forecast reputation established from the accuracy of prior management earnings forecasting, suggesting a spillover effect of forecast reputation. Overall, I provide evidence from share repurchases that reputation does matter.
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Research Products
(3 results)
