摘要：This paper proposes a new theory to explain the behavior of share repurchases by assuming heterogeneity in investors' beliefs. This new theory provides testable hypotheses that are examined empirically in this paper. Our empirical results show strong evidence for the explanation power of investors' opinion divergence in firms repurchasing shares, even after considering controlling variables such as the undervaluation-signaling hypothesis. The results are also robust to various measures of investors' divergent opinions in open market repurchases.
关键词：investor heterogeneity in beliefs; undervaluation signaling hypothesis; information asymmetry; divergence of opinion; firm valuation; asset pricing; anomalies
