FAU-CMF-Finec. Corporate Governance Mechanisms and the Impact of Share Repurchases on Bondholders

Pedro Monteiro, PhD Candidate in Finance, Florida Atlantic University: 0:08 Previous professional experience as Fixed Income Analyst 1:28 The Motivation of Research 3:46 Literature Review — Repurchase 5:18 Literature Review — Signaling Hypothesis and Wealth Transfer Hypothesis 7:01 Hypotheses 1a & 1b: Stronger shareholder governance increases signaling effects on stock buybacks or increases wealth transfer effects 8:26 Hypothesis 2: Shareholder-bondholder conflicts increase the wealth transfer effects on stock repurchase announcements 9:05 Hypothesis 3: There is stronger evidence of wealth transfer effects and weaker evidence of signaling effects when managers have their compensation tied to stock performance 9:32 Hypotheses 4 & 5: wealth transfer effects and signaling effects for bonds with non-distribution covenants and with distribution covenants 10:26 Data Sources 11:26 Shareholders governance variables: Internal governance measure and external governance measure 12:36 Bondholders governance variables —