Open Access
Subscription Access
Open Access
Subscription Access
Information Content of Share Repurchase Program:A Study of Select Indian Firms
Subscribe/Renew Journal
Corporates use share repurchases as a part of overall corporate restructuring strategy of distributing excess funds and building promoters’ stakeholding. It provides a mechanism to adjust the capital structure and financial position of a firm. Repurchase of shares by Indian firms is on the rise in recent years. This paper is an attempt to examine the impact of repurchase announcements made by Information Technology (IT) companies on the wealth of the shareholders. All the recent repurchase announcements made by IT companies fall in the scope of this study. Results of event study methodology have found that there is a positive significant impact of repurchase announcements on the shareholders’ wealth.
Keywords
Share Repurchase, Buyback of Shares, Event Study, Stock Price Performance.
Subscription
Login to verify subscription
User
Font Size
Information
- Brown, S. J., & Warner, J. B. (1980). Measuring security price performance. Journal of Financial Economics, 8(3), 205-258.
- Brown, S. J., & Warner, J. B. (1985). Using daily stock returns: The case of event study. Journal of Financial Economics, 14(1), 3-31.
- Chakraborty, T. (2008). Buyback of shares in India. New Delhi: New Century Publications.
- Comment, R., & Jarrell, G. (1991). The relative signalling power of Dutch-auction and fixed-price selftender offers and open-market share repurchases. The Journal of Finance, 46, 1243-1271.
- Dann, L. Y. (1981). Common stock repurchases: An analysis of returns to bondholders and stockholders. Journal of Financial Economics, 9, 113-138.
- Ekanayake, S. (2004). Information signalling of common stock repurchase programs. The Journal of Finance, 59, 651-680.
- Ikenberry, D. L., & Vermaelen, T. (1996). The option to repurchase stock. Financial Management, 25(4), 9-24.
- Lakonishok, J., & Vermaelen, T. (1990). Anomalous price behaviour around repurchase tender offers. The Journal of Finance, 45(2), 455-477.
- MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of Economic Literature, 35(1), 13-39.
- Maulis, R. W. (1980). Stock repurchase by tender offer: An analysis of the causes of common stock price changes. The Journal of Finance, 35(2), 305-319.
- Nohel, T., & Tarhan, V. (1998). Share repurchases and firm performance: New evidence on the agency costs of free cash flow. Journal of Financial Economics, 49, 187-222.
- Pugh, W., & Jahera, J. S. Jr. (1990). Stock repurchases and excess returns: An empirical examination. The Financial Review, 25(1), 127-142.
- Rees, W. (1996). The impact of open market equity repurchases in UK equity prices. The European Journal of Finance, 2(4), 353-370.
- Stephens, C. P., & Weisbach, M. S. (1998). Actual share reacquisition in open market repurchase programme. The Journal of Finance, 53(1), 313-333.
- Vermaelen, T. (1981). Common stock repurchases and market signalling: An empirical study. Journal of Financial Economics, 9(2), 139-183.
Abstract Views: 421
PDF Views: 0