Share repurchases through transferable put rights: theory and case study

Noe, Thomas, Gay, Gerald and Kale, Jayant R (1989) Share repurchases through transferable put rights: theory and case study. Journal of Financial Economics, 25 (1). pp. 141-160.

Abstract

This paper investigates the effect of share repurchase through transferable put rights (TPRs) on shareholder wealth and corporate control. Transferable put rights make the put option, which is implicit in a tender offer, marketable. Shareholders who do not tender their shares increase their proportional ownership of the firm and extract some of the gains of the tender offer from exiting shareholders. Finally, TPRs improve tax efficiency by ensuring that only shareholders who have the highest tax bases will tender.

Item Type: Article
Keywords: share repurchasing; stocks; stock exchanges; finance
Subject(s): Finance
Date Deposited: 17 Nov 2011 17:44
Last Modified: 02 Mar 2017 10:44
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/1161

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