“Predicting the Timing of Actual Share Repurchase in Hong Kong” by Ka-Fu WONG
Chinese University of Hong Kong
Based on a probit analysis, I explore the predictability of the timing of actual share repurchase in Hong Kong. I find that actual share repurchases tend to cluster. Firms that repuchase seem to rely on technical trading rule signals but in a contrarian way. Economy-wide varaibles such as interest rate and overall stock market return do not matter in triggering the repurchase activity.