Determinants of share repurchases: a quantile regression approach


  • Ioannis Chasiotis Durham University, Business School, UK
  • Andreas.G Georgantopoulos National and Kapodistrian University of Athens
  • Nikolaos Eriotis



share repurchases, quantile regressions, NYSE, payout policy


This study utilizes quantile regressions to investigate the effect of the determinants of share repurchases on firms at different points of the share repurchases distribution.  Empirical results from a large panel of  NYSE repurchasing firms, document an asymmetric effect of several determinants on share repurchases in terms of size, significance and direction. Excess capital, stock options and growth opportunities are significant throughout the distribution and their impact increases at successive quantiles while ownership concentration and leverage exhibit sign reversals between lower and upper quantiles. These differing effects are attributed to highly heterogeneous firm characteristics across quantiles.

Author Biography

Ioannis Chasiotis, Durham University, Business School, UK

Lecturer, School of Business and Economics, Athens Metropolitan College


Almeida, H., Fos, V. and Kronlund, M., 2016. The real effects of share repurchases. Journal of Financial Economics, 119(1), 168-185

Banyi, M.L., Dyl, E.A. and Kahle, K.M., 2008. Errors in estimating share repurchases. Journal of Corporate Finance, 14(4), 460-474

Bens, D., Nagar, V., Skinner, D. and Wong, F., 2003. Employee stock options, EPS dilution, and stock repurchases. Journal of Accounting & Economics, Vol. 36, Issues 1–3, pp. 51-90

Brav, A., Graham, J.R., Harvey, C.R. and Michaely, R., 2005. Payout policy in the 21st century. Journal of Financial Economics, 77(3), 483-527

Buchinsky, M., 1995. Estimating the asymptotic covariance matrix for quantile regression models, a Monte Carlo study, Journal of Econometrics, 68(2), 303-338

Buchinsky, M., 1998. Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research, The Journal of Human Resources, 33(1,) 88-126

Dittmar, A.K., 2000. Why do firms repurchase stock? Journal of Business, 73(3), 331-355

Fattouh, B., Scaramozzino, P. and Laurence Harris, 2005. Capital structure in South Korea: a quantile regression approach, Journal of Development Economics, 76(1), 231-250

Fattouh, B., Harris, L. & Scaramozzino, P. 2008. Non-linearity in the determinants of capital structure: evidence from UK firms. Empirical Economics, 34, 417–438

Fenn, G. and Liang, N., 2001. Corporate payout policy and managerial stock incentives. Journal of Financial Economics, 60(1), 45-72

Jensen, M., 1986. Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. The American Economic Review, 76(2), 323-329

Koenker, R., Bassett, Jr., G., 1978. Regression quantiles. Econometrica, 46(1), 33–50

Lee, B.S. and Suh, J., 2011. Cash holdings and share repurchases: International evidence. Journal of Corporate Finance, 17(5), 1306-1329

Mata, J. and Machado, J., A., F., 1996. Firm start-up size: a conditional quantile approach,

European Economic Review, 40(6), 1305-1323

Oswald, S. and Young, D., 2008. Share reacquisitions, surplus cash, and agency problems. Journal of Banking & Finance, 32(5), 795–806

Rozeff, M 1982. Growth, beta and agency costs as determinants of dividend payout ratios. The Journal of Financial Research, 5(3), 249-259,

Sánchez-Vidal, F.J, 2014. High debt companies' leverage determinants in Spain: A quantile regression approach, Economic Modelling, 36, pp. 455-465




How to Cite

Chasiotis, I., Georgantopoulos, A. ., & Eriotis, N. (2021). Determinants of share repurchases: a quantile regression approach. Economics and Business Letters, 10(1), 27–36.