Dr Dimitris Andriosopoulos, Lecturer of Accounting and Finance, was invited to the University of Liverpool on November 7 to present his research in their research seminar series.
Entitled, "Director Purchases Talk and Buybacks Whisper", his paper was co-authored by Dr H Hoque, University of York.
The paper looked at company share repurchase trades and directors' purchases, asking, are these transactions executed for supporting falling share prices or for timing the market, and how do the markets perceive them?
Synopsis of the research paper:
We investigate share repurchases and directors' purchase in the UK due to the uniqueness of its disclosure framework allowing for very timely and accurate information on the aforementioned trades. We give fresh evidence on the relatively unexplored question whether managers conduct buybacks or insiders purchase shares for market timing or price support, in the UK. We provide evidence on the difference in magnitude of the signalling effect between buybacks and insider trades. We find the directors time their trades for both share buybacks and their personal trades. In addition, we find that insider purchases have a larger (but "cheap") and short-lived impact on share prices, whereas buybacks have a gradually (but "expensive") increasing impact.