When a buyback isn't a buyback: Open market repurchases and employee options

• Published in: Journal of financial economics Vol. 63; no. 1; p. 235
• Main Author: Kahle, Kathleen M
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier Sequoia S.A 01.01.2002
• Subjects: Employees; Executives; Rates of return; Securities buybacks; Stock options; Studies; United States > US

This paper examines how stock options affect the decision to repurchase shares. Firms announce repurchases when executives have large numbers of options outstanding and when employees have large numbers of options currently exercisable. Once the decision to repurchase is made, the amount repurchased...