ShareRepurchase · Payout indicator · Ikenberry, Lakonishok, Vermaelen (1995)

Share repurchases

Long minus short portfolio using the original paper's sort and weighting, market-adjusted. Quarterly, 1972Q3 to 2024Q4.

Expected return · posterior mean, % per quarter
Next quarter
1.35%
95% interval 0.59% to 2.07%
Next year
1.25%
95% interval 0.59% to 1.90%
Next five years
0.97%
95% interval 0.48% to 1.49%

OAP publishes no uniform quintile or decile portfolios for this signal, so only the paper's original portfolio convention is shown.

Cumulative market-adjusted return

+661% since 1972Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1972Q3–2024Q4 4.09% 6.44% 0.63 4.60
2020Q1–2024Q4 9.25% 12.19% 0.76 1.70
2024Q1–2024Q4 6.66% 7.66% 0.87 0.87

Forecast Sharpe ratio, per quarter

Horizon Mean 95% interval P(neg)
Next quarter 0.422 0.181 – 0.654 0.00
Next year 0.391 0.183 – 0.595 0.00
Next five years 0.302 0.148 – 0.463 0.00
Category
Payout indicator
Form
Discrete
Data
Accounting
Predicted sign
Positive
Original sample
1980–1990