The Wealth and information effects on insurers' open market stock repurchase announcements

<?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.loc.gov/MARC21/slim http://www.loc.gov/standards/marcxml/schema/MARC21slim.xsd">
  <record>
    <leader>00000nab a2200000 i 4500</leader>
    <controlfield tag="001">MAP20071505369</controlfield>
    <controlfield tag="003">MAP</controlfield>
    <controlfield tag="005">20080418124618.0</controlfield>
    <controlfield tag="008">040531e20040321usa||||    | |00010|eng d</controlfield>
    <datafield tag="040" ind1=" " ind2=" ">
      <subfield code="a">MAP</subfield>
      <subfield code="b">spa</subfield>
    </datafield>
    <datafield tag="084" ind1=" " ind2=" ">
      <subfield code="a">217</subfield>
    </datafield>
    <datafield tag="100" ind1="1" ind2=" ">
      <subfield code="0">MAPA20080092023</subfield>
      <subfield code="a">Born, Patricia</subfield>
    </datafield>
    <datafield tag="245" ind1="1" ind2="4">
      <subfield code="a">The Wealth and information effects on insurers' open market stock repurchase announcements</subfield>
      <subfield code="c">Patricia Born, Camelo Giaccotto, Titos Ritsatos</subfield>
    </datafield>
    <datafield tag="520" ind1="8" ind2=" ">
      <subfield code="a">This article examines the use of an increasingly popular method of cash disbursement in the insurance industry: stock repurchase programs. Using an sample of stock repurchase announcements between 1981 and 1997, we examine the motivation for stock purchase , estimate the market reaction to the repurchase announcement, and evaluate the magnitude  of the reaction  as it relates to particular insurance industry and firm characteristics. We examinate the abnormal returns around the announcement day and find a significant positive wealth effect associated with repurchase announcements - a result that is consistent with that of other studies of both nonfinancial and financial firms . However, we suspect that the nature of the insurance product  and the highly regulated status of the insurance industry  might serve to mitigate the magnitude of an announcement effect. In fact, we find that the effect for all insurers smaller than that obtained in samples of industrial firms. Finally, we examine the relationship between the magnitude of announcement effect and various firm characteristics and test the significance of information signaling and Jensen's free cash flow theories in the insurance setting </subfield>
    </datafield>
    <datafield tag="650" ind1="1" ind2="1">
      <subfield code="0">MAPA20080586294</subfield>
      <subfield code="a">Mercado de seguros</subfield>
    </datafield>
    <datafield tag="650" ind1="0" ind2="1">
      <subfield code="0">MAPA20080590567</subfield>
      <subfield code="a">Empresas de seguros</subfield>
    </datafield>
    <datafield tag="650" ind1="1" ind2="1">
      <subfield code="0">MAPA20080606091</subfield>
      <subfield code="a">Estrategia empresarial</subfield>
    </datafield>
    <datafield tag="650" ind1="0" ind2="1">
      <subfield code="0">MAPA20080610326</subfield>
      <subfield code="a">Distribución de seguros</subfield>
    </datafield>
    <datafield tag="650" ind1=" " ind2=" ">
      <subfield code="0">MAPA20190001328</subfield>
      <subfield code="a">Márketing de la empresa de seguros</subfield>
    </datafield>
    <datafield tag="700" ind1="1" ind2=" ">
      <subfield code="0">MAPA20080218904</subfield>
      <subfield code="a">Giaccotto, Carmelo</subfield>
    </datafield>
    <datafield tag="700" ind1="1" ind2=" ">
      <subfield code="0">MAPA20080145897</subfield>
      <subfield code="a">Ritsatos, Titos</subfield>
    </datafield>
    <datafield tag="740" ind1="0" ind2=" ">
      <subfield code="a">Risk management and insurance review</subfield>
    </datafield>
    <datafield tag="773" ind1="0" ind2=" ">
      <subfield code="t">Risk management and insurance review</subfield>
      <subfield code="d">New York : The American Risk and Insurance Association</subfield>
      <subfield code="g">Vol. 7, nº 1 Spring 2004 ; p. 25-40</subfield>
    </datafield>
  </record>
</collection>