While the option holdings of managers seemed to have had no statistical impact on whether firms bought back stock or increased dividends, firms buying back stock had higher book to market ratios than firms increasing dividends, and more institutional stockholders. The higher book to price ratio can be viewed as an indication that these firms are more likely to view themselves as under valued. The larger institutional holding might suggest a greater sensitivity to the tax advantage of stock buybacks.

Stocks and Shares Retirement Rescue

Stocks and Shares Retirement Rescue

Get All The Support And Guidance You Need To Be A Success At Investing In Stocks And Shares. This Book Is One Of The Most Valuable Resources In The World When It Comes To

Get My Free Ebook

Post a comment