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

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<rdf:Description>
<dc:creator>Born, Patricia</dc:creator>
<dc:creator>Giaccotto, Carmelo</dc:creator>
<dc:creator>Ritsatos, Titos</dc:creator>
<dc:date>2004-03-21</dc:date>
<dc:description xml:lang="es">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 </dc:description>
<dc:identifier>https://documentacion.fundacionmapfre.org/documentacion/publico/es/bib/57269.do</dc:identifier>
<dc:language>eng</dc:language>
<dc:rights xml:lang="es">InC - http://rightsstatements.org/vocab/InC/1.0/</dc:rights>
<dc:subject xml:lang="es">Mercado de seguros</dc:subject>
<dc:subject xml:lang="es">Empresas de seguros</dc:subject>
<dc:subject xml:lang="es">Estrategia empresarial</dc:subject>
<dc:subject xml:lang="es">Distribución de seguros</dc:subject>
<dc:subject xml:lang="es">Márketing de la empresa de seguros</dc:subject>
<dc:type xml:lang="es">Artículos y capítulos</dc:type>
<dc:title xml:lang="es">The Wealth and information effects on insurers' open market stock repurchase announcements</dc:title>
<dc:title xml:lang="es">Título: Risk management and insurance review</dc:title>
<dc:relation xml:lang="es">En: Risk management and insurance review. - New York : The American Risk and Insurance Association. - Vol. 7, nº 1 Spring 2004 ; p. 25-40</dc:relation>
</rdf:Description>
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