股票回購對自由現(xiàn)金流量假說的進一步檢驗【外文翻譯】

1、本科畢業(yè)論文（設(shè)計）外文翻譯原文：原文：StockRepurchases:AFurtherTestoftheFreeCashFlowHypothesis1.IntroductionEmpiricaltestsoffirmsrepurchasingtheirstockgenerallyconcludethattheobservedpositivestockpricereactionaroundtheannouncementofrepurc

2、haseselftenderoffersisconsistentwiththesignallingthey(seeMasulis(1980)Vermaelen(19811984)Dann(1981)Sinha(1991)CommentJarrell(1991)HoweHeKao(1992)).Thistheyarguesthatcashoutflows(cashdividendsspeciallydesignateddividendsr

3、epurchases)areusedbymanagementtodisseminatepositiveasymmetricinfmationtoshareholdersaboutthefutureprofitpotentialofthefirm.SpecificallyVermaelenconcludesthatwithstockrepurchasesfirmsofferapremiumftheirownsharesindertosig

4、nalthatthefirmisundervalued.Thissignaliscrediblesincethepremiumimposesacostonnontenderingshareholderswhichincludesmanagement(whoisgenerallyprecludedfromparticipatingintheoffer).Ifthetenderofferpremiumisgreaterthantheexte

5、nttowhichthefirmisundervaluedthenthis“false“signalwillresultinareductioninthewealthofnontenderingshareholders(management).AnalternativetheytheoneinvestigatedinthisarticleisJensens(19861989)freecashflow(overinvestment)hyp

6、othesis.Jensenpointsoutthatafirmaccumulatingfreecashflowcaneitherincreaseitscashdividendsrepurchasesomeofitsstockoverinvest.Hearguesthatfirmswithsubstantialfreecashflowtendtooverinvestundertakeprojectswithnegativepresent

7、values.Furthermewhenafirmwithfreecashflowincreasesitscashdividendsitsvalueisexpectedtoincreasesincefewernegativepresentvalueprojectsarenowtaken.OfcourseSupposethatafirmranksitsinvestmentprojectsintermsofprofitabilityfexa

8、mplebytheexpectedinternalrateofreturn(IRR).ThendVdK=1impliesthatatthemarginp=RwherepisthefirmscostofcapitalRistheexpectedinternalrateofreturn.Suchanequilibriumdictateshowmuchofthefirmsavailableresourcesshouldbemaintained

9、freinvestmenthowmuchshouldbedistributedtostockholders.Freecashflowsareprecludedinsuchanequilibrium.Fsimplicitywithoutlossofgeneralityassumeaoneperiodmodelwherethefirminvestsattoatt1thefirmreinvestsdistributesdividends.Co

10、nsiderthefollowingthreescenarios:A.Attimet(wheretottl)theagentpossessespositiveasymmetricinfmationregardingthefirmsfutureprofitability.Thisasymmetricinfmationcaneitherberegardingtheperfmanceofexistingcapitalnewprojectswh

11、ichareexecutedattl.Themanagersignalsthispositiveunknowninfmationtostockholdersbyrepurchasingsomeofthefirmsstock(signallingthey).B.Duringtheperiodtott1pritothestockrepurchasetheexpectedprofitabilityofthefirmsprojectsdecre

12、ases.NamelytheexpectedIRRcurveshiftstotheleftwheretheIRRcurveisdefinedasademfunctionfprojectsrankedbytheirexpectedinternalrateofreturn.Inthiscasethefirmdecidestocontractbyreducingitscapitalexpendituresattlusesthecashflow

13、torepurchaseitsstock(freecashflowthey)C.ThereisnochangeinthefirmsIRRcurvepritotherepurchaseannouncementdatebuttheactualreturnonitsinvestmentsexecutedinthepastexceedstheexpectedreturn.(Thisissimplylikedrawingoneobservatio

14、natromfromagivendistributiontheobservedvalueexceedsthemean).Inthiscasethefirmaccumulatesfreecashflowrepurchasessomeofitsstock(freecashflowthey)Incase(A)nosignificantaverageriskadjustedexcessreturnspritotherepurchaseannou