Stock Price Reactions to Share RepurchaseAnnouncements in Germany −Evidence from a Tax Perspective

In this study we analyse stock price reactions to share buyback announcements froma tax perspective in Germany. To determine the influence of taxes on stock prices onthe announcement day of share buybacks two different tax regimes – the corporateimputation system and the classical corporate tax system – are analysed. Taking theshareholder structure into account, we find evidence that the share price reaction onshare repurchase announcements was significantly larger under the full imputation systemthan under the classical corporate tax system with shareholder relief.[...]