Research | Amy Yazhu Li: Equity-based Compensation and the Timing of Share Repurchases: The Role of the Corporate Calendar
Whenever a listed firm announces share repurchases, there is always a wave of doubt sweeping through the market; especially when the CEO’s equity-based compensation and share repurchases coincide, the public opinion often spearheads “stock price manipulation.” However, the truth may be tucked away in the overlooked details. Equity-based Compensation and the Timing of Share Repurchases: The Role of the Corporate Calendar is a research paper co-authored by Amy Yazhu Li from the School of Management and Economics (SME), The Chinese University of Hong Kong, Shenzhen (CUHK-Shenzhen); Ingolf Dittmann and Stefan Obernberger, both from Erasmus University Rotterdam, the Netherlands; and Zheng Jiaqi (Jacky) from the University of Oxford. With an analysis on a considerable data sample from US listed companies between 2006 and 2019, the paper reveals a counterintuitive conclusion: The corporate calendar (such as financial reporting cycle and the blackout period) is the “invisible rule” that dominates the synchronization of share repurchases and equity-based compensation, rather than CEO’s well-orchestrated manipulation. Days ago, the study was published in the Journal of Accounting and Economics, a top international journal in accounting.
About the Author
Amy Yazhu Li
Assistant Professor, SME, CUHK-Shenzhen
Research
Empirical Corporate Finance, Fintech, and Sustainable Finance
Co-authors
Ingolf Dittmann
Erasmus University Rotterdam
Stefan Obernberger
Erasmus University Rotterdam
Zheng Jiaqi (Jacky)
University of Oxford
