| 研究実績の概要 |
This year I examined the impact of unconventional monetary policy on firms' stock repurchases in Japan and the United States within a Tobit model framework. This is the first comparison of firms' stock repurchases in Japan and the United States from the perspective of unconventional monetary policy.
The estimated results indicate that in both Japan and the United States, during the unconventional monetary policy period, firms with more free cash flow and lower borrowing costs are more likely to repurchase stock, whereas firms with higher financial leverage are more likely to abstain from stock repurchases. There is evidence that firms coordinate dividends and stock repurchases to reward shareholders. I also find some significant differences between the results of Japanese and U.S. firms. The positive relationship between free cash flow and stock repurchases is more noticeable in U.S. firms, whereas stock repurchases are more negatively affected by borrowing costs in Japanese firms. While Japanese firms tend to repurchase stock to take advantage of undervaluation, U.S. firms tend to repurchase stock following good stock-market valuation, and the negative relationship between financial leverage and stock repurchases is stronger in Japanese firms.
These differences suggest that financial structure is also an important factor in determining why firms repurchase stock during the unconventional monetary policy period.
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