Buying High and Selling Low: Stock Repurchases and Persistent Asymmetric Information

Hongda Zhong Philip Bond   - Dec 30, 2016

Share repurchases naturally emerge in a repeated Myers and Majluf's world. Some firms strictly profit from the repurchase transaction. Some other firms lose money at repurchase, but can subsequently issue shares at more favorable prices. Worst firms directly issue without repurchases.