The price impact and timing of actual share repurchases in Norway
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- Master Thesis 
Little is known about the price impact and timing of actual share repurchases. Data unavailability has hindered research in most countries, including the United States. Using unique data on actual share repurchase transactions from Norway, we test for the price impact and timing of daily open market repurchases. We find evidence that share repurchases typically follow after a negative drift in the stock price, and the average three-day abnormal return around the announcement is 0.54%. Moreover, the initial market reaction is greater for repurchases that are pursued by small firms and for firms that experience a negative drift in the stock price prior to the transaction. The evidence presented is seemingly indicative of managers’ intent to signal undervaluation through repurchase transactions. However, we do not find any significant long-term abnormal returns for repurchasing firms. This result suggests that on average, managers do not time the market based on informational advantage.