The impact of internal and external factors on the relationship between information opacity and open-market repurchases

Chih Wei Wang, Jing Yu Peng

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This study investigates the linkage between information opacity and open-market share repurchases in emerging markets. We measure information opacity by accruals quality and find that firms with higher levels of information opacity experience more positive market reactions following repurchase announcements, which remain after controlling for some firm characteristics. We document that information opacity is positively related to announcement returns only in firms with strong corporate governance, controlled by a single family, or with a low level of foreign ownership. Our results reveal that the positive relationship between information opacity and announcement returns still exists even during the global financial crisis.

Original languageEnglish
Pages (from-to)4085-4118
Number of pages34
JournalAccounting and Finance
Volume61
Issue number3
DOIs
StatePublished - Sep 2021

Keywords

  • Corporate governance
  • Corporate governance
  • Financial crisis
  • Financial crisis
  • Information opacity
  • Information opacity
  • Open-market share repurchases
  • Open-market share repurchases
  • Ownership structure
  • Ownership structure

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