Objective
Stock repurchases are an important tool for returning cash back to shareholders. Since their regulation in the US in the mid 1980s, stock repurchases have experienced dramatic growth. EU countries, however, started allowing public corporations to buy back their shares only in the late 1990s. Moreover, firms in EU countries that do start repurchases fail complete them. For example, UK and French firms end up repurchasing only 28% and 10% of their declared intention, respectively, in comparison to about 80% in the US. Without good free cash payout mechanisms companies and markets cannot be efficient, and economies cannot thrive. Why do repurchases efficiently disburse cash in the US but not in the EU? What can be done to make repurchases work in EU countries? The purpose of this project is to help understand the properties and limitations of repurchases. The results will provide guidelines to governments how to regulate repurchases, to firms when to repurchase, and to investors how to adjust their investment strategies when firms they invest in announce a repurchase.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
FP7-PEOPLE-2007-4-3-IRG
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Coordinator
69978 Tel Aviv
Israel
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.