庫藏股與買回對股利發放之影響_4_.doc

The International Journal of Accounting Studies 41 2005 7 77-101 * * 2002 10 2005 17 77

78 41 2005 7 The Effect of Stock Repurchases on Dividend Payouts Kuei Hui Cheng National Taipei University Abstract This paper investigates how stock repurchases affect companies dividend payouts using univariate and multi-regression analyses. That is, whether there exists substitute and/or stockholder tax saving effects for stock repurchases and dividend payouts. The results show that stock repurchase ratios are positively related with cash dividend payout ratios but negatively correlated with stock dividend payout ratios. After controlling for free cash flow, there exists a strong complementary relationship between stock repurchases and cash dividend payouts. The results also show, ceteris paribus, imputation tax credit ratios are positively related with cash and stock dividend payout ratios, lending support to the tax saving effect. In sum, the findings of this study suggest that stock repurchases provides an alternative for companies to increase their cash payouts to shareholders and thus may offer an incentive to capture tax savings for shareholders. The findings of this study provide empirical evidence on the impact of the stock repurchases on firms dividend payouts. Keywords: Stock repurchases, Dividend payouts, Substitute effect, Stockholder tax saving effect. Submitted October 2002 Accepted July 2005 After 3 rounds of reviews

- 79 (payout policy) (Grinblatt and Titman 1998; Brealey and Myers 2002) Miller Modigliani (1963) 1 (irrelevance) 2 4 2003.8.21 (Stephens and Weisbach 1998; Dittmar 2000; Jagannathan and Stephens 2001; Crullon and Michaely 2002; Peng et al. 2003) Fama and French (2001) Crullon and Michaely (2002) 1980 2000 26.1 6.8 1980 13.1 2000 113.1 (substitute effect) DeAngelo et al. (2002) 100 16.3% (complementary effect) 2000 1 Miller and Modigliani (1963) (1) (2) (3) (4) (5) 2 1986 40

80 41 2005 7 3 57% 118% 4 1999 2000 141 2001 2002 45.9%70.7 Easterbrook (1984)Jensen (1986) Jong et al. (2003) (1998) (1999) ( 2004) 5 6 ( 1999 2000 2001 2001 2001 2002 2004) 55 40 7 3 2000 6 30 28 2 3 4 = - - / Lehn and Poulsen (1989)Gul and Tsui (1997) (2002) 5 (http://newmops.tse.com.tw) 6 1998 1 1 55% 40% 10% 7 2

- 81 (2000) 8 9 10 8 Dann (1981); Comment and Jarrell (1991); Ikenberry et al. (1995); McNally (1999); Dittmar (2000); Jagannathan and Stephens (2001); (2001) (2001) (2001) (2001) (2002) (2002) (2002) 9 Bhattacharya (1979); Woolridge (1983); John and Williams (1985); Alli et al. (1993) 10 Easterbrook (1984) ; Jensen (1986); Crutchley

82 41 2005 7 11 12 Jagannathan and Stephens (2001) 10 Grullon and Michaely (2002) 10 Dittmar(2000) (2002) (2003) SP 1500 (2001) (2001) (2002) logistic ( ) 1998 10% ( 2001 2004) (2004) Lakonishok and Lev (1987) (1994) (2001) Easterbrook (1984)Jensen (1986)Jong et al. (2003) (1999) and Hansen (1989); Alli et al. (1993); Dittmar (2000) 11 Medury et al. (1992); Dittmar (2000); Hovakimian et al. (2001) 12 Weisbenner (2000); Bens et al. (2002)

- 83 H1a H1b (stockholder tax saving hypothesis) Miller and Scholes (1978) Lie and Lie (1999)1986 Brav et al. (2003) 42.4 2001 2001 2002 2000 2001 2004

84 41 2005 7 2000 1998 d d d 1 d 2 (1+ t c %) t c % t i d a% B B(1-a%)( d 1 + d 2 )(1% t c )(1 t i % )( d 1 + d 2 ) t c B B t = 1 c t i B B t = 1 i (2002) H2 H3

- 85 (2004) Lakonishok and Lev (1987) (1994) (2001) (generalized autoregressive conditional heteroscedasticity; GARCH method) 13 1998 1999Easterbrook1984 Jensen 1986 (Myers and Majluf 1984; Chung and Charoenwong 1991 Smith and Watts 1992; Lang et al. 1996) 1994 2001 2004Jensen and Meckling 1976; Myers 1977; Kalay 1982; Rozeff 1982; Easterbrook 1984 (Alli et al. 1993) 2004Crutchley and Hansen 1989; Chang and Rhee 1990 CashDpr = StockDpr = f ( Abuy, ITC, BlockHold, RUdis, FCF, StockDpr, CashStab, GR, LD, Size ) (1) f ( Abuy, ITC, BlockHold, RUdis, FCF, CashDpr, StockStab, GR, LD, Size) (2) 1. (CashD) (StockD) $10 2. (Abuy) 14 13 (OLS) (GARCH) 14 1. 2. 3.

86 41 2005 7 (Imputation Tax CreditITC) 66 6 1998 (BlockS) Black et al. (2000) 10 5 15 3. (RUdis) 66 9 1998 2 15

- 87 1998 10% (FCF) Easterbrook (1984)Jensen (1986)Jong et al. (2003) (1998) (1999) 2002 Lehn and Poulsen 1989; Gul and Tsui 1997 (FCF) - - - / (GR) (Myers and Majluf 1984) 2001 2002 2002Chung and Charoenwong 1991 16 (LD) (Jensen and Meckling 1976; Myers 1977; Kalay 1982; Rozeff 1982) Easterbrook (1984) (2004) (1994) (2001) (Myers 1977; Kalay 1982; Rozeff 1982) (Jensen and Meckling 1976) Easterbrook (1984) (1994) (2001) (2004) 17 16 17

88 41 2005 7 (CashSb/StockSb) (Lintner 1956; Fama and Babiak 1968; Laub 1976; Baker et al. 1985; Alli et al. 1993) (CashSb) (StockSb) (Size) 2004Crutchley and Hansen 1989; Chang and Rhee 1990 2000 8 9 2003 8 31 285 775 95 220 2003 2000 8 9 2002 12 31 317 2000~2002 2000 2001 2002 5 0 2 0 2 0 1 0 7 0 1 0 3 0 3 0 8 0 3 0 4 0 1 0 29 0 16 0 10 0 3 0 23 0 9 0 10 0 4 0 17 0 6 0 5 0 6 0 15 0 7 0 4 0 4 0 6 0 3 0 2 0 1 0 15 0 8 0 6 0 1 0 2 0 1 0 1 0 0 0 109 11 31 1 41 2 37 8 32 0 15 0 10 0 7 0 11 0 6 0 4 0 1 0 2 0 1 0 1 0 0 0 7 0 4 0 2 0 1 0 0 18 0 9 0 7 0 2 * 288 29 317100% 113 10 123(38.8%) 105 9 114(36.0%) 70 10 80(25.2%) 317 120

- 89 32 2000 123 (38.8%)2001 114 (36%)2002 80 (25.2%) (n=317) 2000 n=123 2001 n=114 2002 n=80 CashD(%) 28.72 33.98 19.85 28.51 31.75 36.57 38.05 35.02 StockD(%) 20.47 29.02 23.67 29.82 21.45 31.06 14.16 23.63 Mbuy($) 213,761 517,042 136,371 217,800 215,935 490,908 329,652 792,736 Abuy(%) 44.34 102.74 47.81 123.91 54.00 107.10 25.22 39.81 ITC(%) 12.66 12.96 11.50 12.94 14.44 13.50 11.91 12.06 BlockS(%) 12.45 10.28 12.62 10.17 12.03 10.05 12.75 10.82 RUdis(%) 28.80 38.08 31.82 38.83 35.67 39.92 14.39 29.99 FCF(%) 5.43 4.93 5.42 4.78 5.92 4.85 4.82 5.22 CashSb($) 0.28 0.39 0.17 0.29 0.35 0.42 0.34 0.46 StockSb($) 0.90 1.00 1.16 1.14 0.81 0.93 0.62 0.74 GR(%) 1.36 1.05 1.63 1.26 0.99 0.65 1.46 1.01 LD(%) 9.77 9.48 10.35 10.04 8.92 9.06 10.04 9.24 Size(log) 15.89 1.15 15.97 1.04 15.85 1.16 15.84 1.28 a. CashD ) = StockD = $10 Abuy = ( ) ITC = BlockS = RUdis = ( ) FCF = ( - - - )/ CashSb/StockSb / = LD = GR = Size =

90 41 2005 7 (Mbuy) 213,761 2000 136,371 2002 329,652 142% (Abuy) 44.34% 2000 47.81% 2001 54% 2002 25.22% 53.3% 28 2 2 10% (FCF) 2000 5.42%2001 5.92% 2002 4.82 (CashD) 28.72% 2000 19.85% 2002 38.05% (StockD) 2000 23.67% 2002 14.16% (ITC) 12.66%2000 11.50%2001 14.44%2002 11.91% (BlockS) 12.45%2000 12.62%2001 12.03%2002 12.75% (RUdis) 28.80%2000 31.82%2001 35.67% 2002 14.39% (GR) 1.36% 2000 1.63%2001 0.99% (LD) 9.77% (CashSb) $0.28 (StockSb) $0.90 (Size) 15.89 Pearson Spearman Spearman Pearson (Abuy) (CashD) Pearson Spearman (Abuy) (StockD)Pearson Spearman (ITC) (BlockS) Pearson (StockD) (StockSb) 0.53 0.5

- 91 Pearson/Spearman p CashD StockD Abuy ITC BlockS RUdis FCF CashSb StockSb LD GR Size CashD 1 0.0456 0.3997 0.4384 0.0356 0.0485 0.0741 0.4837 0.0132-0.1618 0.0782-0.0422 (0.4188) (<.0001) (<.0001) (0.5398) (0.3895) (0.2014) (<.0001) (0.8143) (0.005) (0.1775) (0.454) StockD -0.1960 1 0.2546 0.2773 0.1570 0.0266 0.4031 0.0939 0.5319-0.0947 0.4863-0.1009 (0.0004) (<.0001) (<.0001) (0.0065) (0.6374) (<.0001) (0.0951) (<.0001) (0.1021) (<.0001) (0.0728) Abuy 0.1207-0.0723 1 0.4910 0.1089 0.0899 0.1411 0.1733 0.1362-0.0959 0.1291-0.1051 (0.0316) (0.1995) (<.0001) (0.0601) (0.1099) (0.0146) (0.002) (0.0152) (0.0979) (0.0256) (0.0616) ITC 0.3183 0.1352 0.2133 1 0.1763 0.0496 0.1535 0.3396 0.2004-0.1922 0.1515-0.1585 (<.0001) (0.016) (0.0001) (0.0022) (0.3793) (0.0078) (<.0001) (0.0003) (0.0008) (0.0087) (0.0047) BlockS 0.0075 0.1929 0.0409 0.1332 1-0.0310 0.0669 0.0349 0.1302-0.2022 0.0811-0.4396 (0.8973) (0.0008) (0.4817) (0.0212) (0.5929) (0.249) (0.5483) (0.0244) (0.0004) (0.1618) (<.0001) RUdis -0.0359-0.1719-0.0646-0.0186-0.0935 1 0.0276 0.0455-0.01 0.0130-0.0710 0.0117 (0.5246) (0.0021) (0.2516) (0.741) (0.1067) (0.6343) (0.4199) (0.8594) (0.8228) (0.2207) (0.8359) FCF 0.0309 0.3264-0.0483 0.0632 0.0592-0.0669 1 0.1741 0.6251-0.0372 0.5349-0.0976 (0.5942) (0.0001) (0.4056) (0.276) (0.3077) (0.2486) (0.0019) (<.0001) (0.5213) (<.0001) (0.0922) CashSb 0.4037 0.0016-0.0641 0.1709 0.0645 0.0039 0.1069 1 0.0854-0.2101 0.1643-0.0222 (<.0001) (0.9775) (0.2548) (0.0023) (0.2661) (0.9452) (0.0572) (0.1292) (0.0003) (0.0044) (0.6944) StockSb -0.1226 0.4833-0.0318 0.0922 0.1796-0.1159-0.0225-0.0185 1-0.1071 0.6816-0.0422 (0.029) (<.0001) (0.5728) (0.1014) (0.0018) (0.0392) (0.6895) (0.7435) (0.0644) (<.0001) (0.4541) LD -0.1239-0.0755 0.0538-0.2008-0.2152 0.0098-0.0179-0.1975-0.1253 1-0.0456 0.3956 (0.0322) (0.1928) (0.3541) (0.0005) (0.0002) (0.8659) (0.7573) (0.0006) (0.0304) (0.4317) (<.0001) GR -0.0232 0.3532-0.0129 0.0609 0.0978-0.1530 0.4832 0.0762 0.6524-0.0249 1-0.0072 (0.6891) (<.0001) (0.8238) (0.2937) (0.0915) (0.008) (<.0001) (0.1891) (<.0001) (0.6681) (0.9011) Size -0.0294-0.0762 0.0239-0.1631-0.4100-0.0084 0.0164 0.0484 0.0366 0.3909 0.1361 1 (0.6025) (0.176) (0.6721) (0.0036) (<.0001) (0.882) (0.7774) (0.3909) (0.5163) (<.0001) (0.0186) a.

92 41 2005 7 317 (G1, CD=0, SD=0) (G2, CD>0, SD=0) (G3, CD=0, SD>0) (G4, CD>0, SD>0) (G1) (G4) (G2) (G3) t Z (2000-2002 Group1 CD=0 SD=0 (a ) N=317 n=102 Group2 CD>0 SD=0 (b ) n=58 Abuy Mean 38.24% 58.41% Median 0% 32.42% ITC Mean 6.58% 15.72% Median 0% 14.79% BlockS Mean 10.81% 11.51% Median 9.29% 9.55% RUdis Mean 37.75% 34.95% Median 0% 11.47% FCF Mean 3.55% 4.59% Median 2.75% 4.26% CashSb Mean 0.1005 0.4040 ( Median 0 0.2750 StockSb Mean 0.5814 0.3188 Median 0.2250 0.0750 LD Mean 11.31% 9.41% Median 11.37% 6.81% GR Mean 0.95% 0.95% Median 0.76% 0.77% Size Mean 16.02 15.73 Median 16.00 15.82 a. Group3 CD=0 SD>0 (c ) n=45 48.73% 21.44% 9.92% 5.82% 13.65% 9.95% 17.02% 5.51% 6.21% 6.84% 0.1218 0 1.3220 1.5000 10.58% 6.86% 1.67% 1.32% 15.77 15.64 Group4 CD>0 SD>0 (d ) n=112 40.84% 21.27% 17.72% 16.41% 14.04% 12.27% 22.21% 7.45% 7.36% 7.13% 0.4372 0.4000 1.3178 1.1000 8.23% 6.06% 1.85% 1.43% 15.91 15.56 t(p )Value Z(p )Value (b )-(a ) t (p )Value Z(p )Value (c ) -(a ) 0.98 (0.3278) 0.61(0.5411) 7.54(0.0001) 6.50(0.0001) 4.54(0.0001) 1.56(0.1208) 5.90(0.0001) 4.16(0.0001) 0.46(0.6456) 1.39(0.0853) 0.06(0.4752) 0.05(0.4782) 0.39(0.6988) 3.54(0.0005) 1.31(0.1897) 1.30(0.1926) 1.41(0.0801) 2.85(0.0027) 1.716(0.0430) 3.42(0.0003) 4.78(0.0001) 0.40(0.6936) 5.16(0.0001) 1.37(0.1716) 2.55(0.0118) 0.66(0.5120) 3.85(0.0003) 3.12(0.0018) T(p ) Value Z( p )Value (d)-(a ) 0.18(0.8596) 7.37(0.0001) 6.65(0.0001) 7.65(0.0001) 2.26(0.0126) 1.48(0.0693) 2.87(0.0046) 1.09(0.2747) 5.38(0.0001) 4.29(0.0001) 7.59(0.0001) 6.45(0.0001) 5.67(0.0001) 4.92(0.0001) 1.18(0.1148) 1.59(0.0556) 0.41(0.3410) 1.07(0.1426) 2.43(0.0079) 3.02(0.0012) 0.01(0.4954) 3.46(0.0006) 6.67(0.0001) 0.06(0.4753) 2.68(0.0037) 6.54(0.0001) 1.79(0.0764) 1.24(0.2170) 0.70(0.4860) 1.31(0.1897) 1.91(0.0565) 1.64(0.1013) (G2) 58.41% (G3) 48.73% (G4) 40.84% (G1) 38.24% G2G3 G4 (G1)

- 93 (G1) 6.58% (G4) 17.72% G2G3 G4 (G1) 10.81%11.51%13.65%14.04% (G1) (G3) (G4) G3 G4 (G1) 10% G2 G4 (G1) (G4) 7.36 (G3)6.21 G3 G4 (G1) G3 G4 G1 G2 Shapiro-Wilk White(1980) Godfrey s Serial Correlation Test 18 (GARCH) 18 Shapiro -Wilk 0.97 1 White-Test 123(p <0.0001) 2.1p 0.0152 Godfrey s 125p <0.0001 Godfrey s 90.7 p <0.0001

94 41 2005 7 (2000-2002 CashD StockD ( ) ( ) Intercept 34.0771.18 33.9771.46* Abuy 0.0241.39* -0.023-1.72** ITC 0.7175.02*** 0.3783.19*** BlockS -0.108-0.58 0.1941.28* RUdis -0.072-1.6* -0.094-2.60** FCF.4871.21 0.5291.52* CashD -0.172-3.96*** StockD -0.305-4.48*** CashSb 31.5006.85*** StockSb 9.2614.43** LD -0.054-0.27 0.0740.45 GR -0.519-0.27 1.7660.99 Size -0.024-0.01-1.693-117 2 Adj R n=317 29.38% 32.11% a. b. t * 5% ** 1% H1a H1b (2004) (1994) (2001) Lakonishok and Lev (1987) DeAngelo et al. (2002)

- 95 (2003) Crullon and Michaely (2002) 10% 5% 19 10% 19

96 41 2005 7 (2003) 2004 : 307-352 2001 2000 02723

- 97 2004 21 (2): 257-277 2001 2001 1998 Tobin's Q 15 (4): 587-621 1999 8: 173-211 2002 2002 2002 2001 1999 31 (6): 134-158 2000 308 85-91 2003 2001 2002 : 58-67 2001 2001 -

98 41 2005 7 : 55-86 2001 : 37-59 2002 -- : 103-119 2002 35 1-29 1994 2002 1994 : 2001 2002 2000 2003.8.21 c1 Alli, K. L., A. Q. Khan, and G.. G. Ramirez. 1993. Determinants of corporate dividend policy: a factorial analysis. The Financial Review 28 (4): 523-547. Baker, H. K., G.. E. Farrelly, and R. Edelman. 1985. A survey of management views on dividend policy. Financial Management 14 (3): 78-84. Bens, D. A., V. Nagar, D. J. Skinner, and M. H. F. Wong. 2002. Employee stock options, EPS dilution, and stock repurchases. Working paper, University of Chicago. Bhattacharya, S. 1979. Imperfect information, dividend policy, and the bird in the hand fallacy. Bell Journal of Economics 10 (1): 259-270. Black, E. L., J. Legoria, and K. F. Sellers. 2000. Capital investment effects of dividend imputation. The Journal of the American Taxation Association 22 (2): 40-59. Brav, A., J. R. Graham, C. R. Harvey, and R. Michaely. 2003. Payout policy in the

- 99 21st century. Working paper, University of Duke. Brealey, R., and S. Myers. 2002. Principles of Corporate Finance. McGraw-Hill Irwin. Chang, R. P., and S. G. Rhee. 1990. The impact of personal taxes on corporate dividend policy and capital structure decisions. Financial Management 19 (2): 21-31. Chung K. H.; and C. Charoenwong. 1991. Investment options, assets in place, and the risk of stocks. Financial Management 20 (Autumn): 21-34. Comment, R., and G. Jarrell. 1991. The relative signaling power of dutch-auction and fix-price self-tender offers and open-market share repurchases. The Journal of Finance 46 (September): 1243-1271. Crullon, G., and R. Michaely. 2002. Dividends, share repurchases, and the substitution hypothesis. The Journal of Finance 57 (August): 1649-1684. Crutchley, C. E. and R. S. Hansen. 1989. A test of the agency theory of managerial ownership, corporate leverage, and corporate dividends. Financial Management 18 (4): 36-46. Dann, L. Y. 1981. Common stock repurchases: an analysis of returns to stockholders and bondholders. Journal of Financial Economics 9 (2): 113-138. DeAngelo, H., L. DeAngelo and D. Skinner. 2002. Are dividends disappearing? dividend concentration and the consolidation of earnings. Working paper, University of Southern California. Dittmar, A. K. 2000. Why do firms repurchase stock?. Journal of Business 73 (3): 331-356. Easterbrook, F. H. 1984. Two agency-cost explanations of dividends. The American Economic Review 74 (4): 650-659. Fama, E. F. and K. R. French. 2001. Disappearing dividends: changing firm characteristics or lower propensity to pay? Journal of Financial Economics 60 (1): 3-43. Fama, E., and H. Babiak. 1968. Dividend policy: an empirical analysis. Journal of American Statistical Association 63 (4): 1132-1161. Grinblatt, M., and S. Titman. 1998. Financial markets and corporate strategy. McGraw-Hill Irwin. Gul, F. A., and J. S. L. Tsui. 1997. A test of the free cash flow and debt monitoring hypotheses: Evidence from audit pricing. Journal of Accounting & Economics

100 41 2005 7 24 (2): 219-237. Hovakimian, A., T. Opler, and S. Titman. 2001. The debt-equity choice. Journal of Financial and Quantitative Analysis 36 (March): 1-24. Ikenberry, D., J. Lakonishok, and T. Vermaelen. 1995. Market underreaction to open market share repurchases. Journal of Financial Economics 39 (2): 181-208. Jagannathan, M., and C. Stephens. 2001. Motives for multiple open-market repurchase programs. Working paper, Binghamton University State University of New York. Jensen, M., and W. Meckling. 1976. Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (4): 305-360. Jensen, M. C. 1986. Agency costs of free cash flow, corporate finance, and takeover. American Economic Review 76 (2): 323-329. John, K., and J. Williams. 1985. Dividends, dilution, and taxes: A signaling equilibrium. Journal of Finance 40(4):1053-1070. Jong, A. D., R. V. Dijk, and C. Veld. 2003. The dividend and share repurchase policies of Canadian firms: empirical evidence based on an alternative research design. International Review of Financial-Analysis 12 (4): 349-378. Kalay, A. 1982. Stockholder-bondholder conflict and dividend constraints. Journal of Financial Economics 10 (2): 211-233. Lakonishok, J., and B. Lev. 1987. Stock splits and stock dividends: Why, who, and when. Journal of Finance 42 (September): 913-932. Lang, L., E. Ofek, and R. M. Stulz. 1996. Leverage, investment, and firm growth. Journal of Financial Economics 40 (January): 3-29. Laub, M. 1976. On the informational content of dividends. Journal of Business 49 (2): 73-80. Lehn, K., and A. Poulsen. 1989. Contractual resolution of bondholder-stockholder conflicts in leveraged buyouts. Journal of Law & Economics 34 (October): 645-674 Lie, E., and H. J. Lie. 1999. The role of personal taxes in corporate decisions: An empirical analysis of stock repurchases and dividends. Journal of Financial and Quantitative Analysis 34 (1): 533-552. Lintner, J. 1956. Distribution of incomes of corporations among dividends, retained

- 101 earnings, and taxes. The American Economic Review 46 (4): 97-113. McNally, W. 1999. Open market stock repurchase signaling. Financial Management 28 (Summer): 55-67. Medury, P.V., L. E. Bowyer, and V. Scrinivasan. 1992. Stock repurchases: A multivariate analysis of repurchase firms. Quarterly Journal of Business and Economics 31 (1): 21-44. Miller, M. H., and F. Modigliani. 1963. The taxes and the cost of capital. The American Economic Review 53 (4): 433-443. Miller, M. H., and M. S. Scholes. 1978. Dividends and taxes. Journal of Financial Economics 6 (4): 333-364. Myers, S. C. 1977. Determinants of corporate borrowing. Journal of Financial Economics 5 (4): 147-175. Myers, S. C., and S. Majluf. 1984. Corporate financing and investment decisions: when firms have information that investors do not have. Journal of Financial Economics 13 (2): 187-221. Peng, H., K. H. Cheng, and J. Z. Lee. 2003. The relationship between frequency of stock repurchase and firm characteristics. Working paper, National Taipei University. Rozeff, M. S. 1982. Growth, beta and agency costs as determinants of dividend payout ratio. The Journal of Financial Research 5 (3): 249-259. Smith, C., and R. Watts. 1992. The investment opportunity set and corporate financing, dividend, and compensation policies. Journal of Financial Economics 32 (December): 263-292. Stephens, C., and M. S. Weisbach. 1998. Actual share reacquisition in open-market repurchase programs. The Journal of Finance 53 (1): 313-333. Weisbenner, S. J. 2000. Corporate share repurchases in the 1990s: What role do stock options play? Working paper, Federal Reserve Board. White, H. 1980. A heteroskedastictiy-consistent covariance matrix estimator and a Direct test for heteroskedastictiy. Econometrica 48 (4):817-838 Woolridge, J. R. 1983. Stock dividends as signals. The Journal of Financial Research 6 (1): 1-12.