RIJBFA Volume 1, Issue 4(April 2012) ISSN: X. Research Consortium RIJBFA RADIX INTERNATIONAL JOURNAL OF BANKING, FINANCE AND ACCOUNTING
|
|
- Heather Chandler
- 6 years ago
- Views:
Transcription
1 A Journal of Radix International Educational and Research Consortium RIJBFA RADIX INTERNATIONAL JOURNAL OF BANKING, FINANCE AND ACCOUNTING OPEN MARKET SHARE BUYBACKS IN INDIA Dr. Karamjeet Kaur Head, Department of Commerce ASSM College, Mukandpur (Constituent College of GNDU, Amritsar) SBS, Nagar PUNJAB-INDIA INTRODUCTION Share buybacks has become a buzzword today in Indian stock markets. Companies in India can buyback their share either through open market route or through tender offer route. Majority of companies have been using the open market route through stock exchange. A total of 172 events of share buybacks through open market have been found during March 2001 to March Many companies have announced share buybacks more than once during this period. Previous research has found that share buybacks announcements create positive market reaction suggesting thereby
2 that stock markets welcome share buybacks. Most of research has been done in developed markets. Since, share buybacks is a recent phenomenon in India, very few studies have been conducted in Indian context. Also, rarely any study is found on the impact of open market share buyback announcements in India. The objective of this paper is to study the stock market reaction to open market share buyback announcements in India for BSE listed companies. Rest of the paper is organised as follows: Section II reviews relevant literature. Section III discusses the research methodology. Section IV presents the analysis and interpretation. Section V concludes the study. Review of Literature There is a rich literature studying the price impact surrounding announcements of open market share repurchase programs in the US [Vermaelen (1981), Comment and Jarrell (1991), Ikenberry et al. (1995), Kahle (2002), Grullon and Michaely (2004)]. In the US, share repurchase programs are authorized by the board of directors and hence do not need shareholder approval as in European countries. Announcements of open market share repurchase programs in the US seem to be associated with a positive abnormal return of around 3%. The most prevalent explanation for this finding is that managers activate open market share repurchase programs when the stock is perceived as undervalued. The announcement is therefore, a signal of undervaluation of the firm s stock which exhibits a positive abnormal return. Prior studies that have examined the announcement effect of open market share repurchase programs in Europe have found a much smaller price impact than that found in the US e.g Lasfer (2000) find an announcement effect of 1.64% in the UK, 0.78% in France, and 0.63% in Italy. Rau and Vermaelen (2002) find an announcement in the UK of 1.14%. However, these studies differ from the US studies since they examine the announcement effect
3 surrounding announcements that the firms intend to ask for the shareholders approval to start a repurchase program at the next shareholders meeting. The smaller price impact is thus not surprising since all firms should request an authorization by the shareholders to be able to take advantage of buying undervalued shares whether or not the shares are undervalued at the time of the announcement. Ikenberry et al. (1995) found that average abnormal four year buy and hold returned measured after the initial announcement is 12.1% in US. Most of these studies have found undervaluation of shares as the motive of announcing share buyback programs, hence for positive stock market reaction. So far, no study on open market share buyback announcement has been conducted in Indian market. Hence, the need is felt to undertake this study. Data Base and Methodology The sample in this section consists of open share buy-back announcements of BSE listed companies for the period January-December The public announcement dates of open market share buy-backs are available on The companies showing infrequent trading are not included in the sample. A total of 21 events of open market share buy-backs are found where public announcements dates are available for BSE listed companies. For the purpose of present study, CPRA has been used to examine the market reaction to open market share buyback announcements. This approach has been used by Masulis (1980) in analyzing the stock price behavior around repurchase, Woolridge (1983) in analyzing the stock price change with dividend changes and Kaur and Singh (2003) in analyzing market reaction to share buyback announcements. In this approach, stock returns are analyzed around the
4 event announcement date. The announcement period is defined to include day 0 and +1 because sometimes announcements are made in the later hours of the day. If there is no trading on day 0, the next day s closing price is used as the day 0 closing price. Then a time series of stock returns is taken ten days before the announcement and 9 days after the announcement date, defining these returns as the comparison period returns (excluding the event period under study 0, +1). The mean return process is stationery and that the time series is representative of the security s return distribution. The means of return distribution for the event day and surrounding days are compared to ascertain the market s perception of event announcement. Then, student s t-test is applied to test the significance of the difference between the portfolio s announcement period mean daily return and comparison period returns. In short various steps involved are as follows: a) Daily return for security i from 10 trading days before to 10 trading days after the announcement (including day 0) of event announcement is computed by R i, t MP i, t MP MP i,( t 1) i,( t 1) Where MP i,t = Market price of security i on day t. MP i,(t-1) = Market price of security i on day t-1. b) Mean daily returns of all the securities is calculated for each relative day by using the following formula : n 1 n i 1 MDR t R i, t
5 Where n = No. of securities in the portfolio during day t. t = -10 to +10 days. c) Significance of MDR is tested through t-value by comparing MDR of comparison period with that of MDR of announcement period. Mean percentage of returns greater than zero (MPRZ) is calculated to find out the percentage of companies experiencing positive returns. Analysis and Interpretation Table 4.1 shows the CPRA results of open market share buy-back announcement for BSE listed companies for 21 days event window. The mean abnormal returns are positive from day 0 to day +3 but thereafter negative till day -7. Mean abnormal return on day -2 is 1.40% which is highest as compared to other days which shows that the market anticipates the event. Table 4.1 Market Reaction to Open Market Share Buy-back Announcements in BSE (CPRA) Trading Day Mean Daily Return Cumulative Daily Returns (CDR) Mean Percentage of Returns Greater than Zero (MPRZ) (MDR)
6 M D R M P R Z M D R MPRZ Observation Period
7 Comparison Period t value of MDR 2.38 The two days observation period (0 to 1) mean return is 1.38% whereas comparison period mean return is 0.07%. The difference between the mean returns is significant at 5% level of significance implying that announcement period returns are significantly higher than comparison period. This is due to mean daily return being highest on day 0. Also, two days observation period MPRZ is 54.76% as compared to comparison period MPRZ which is 18.70%. A total of 3.91% CDR is generated during 21-day event window. Figure 4.1 plots the mean daily returns and cumulative daily returns for 21 days event window. The mean daily returns are positive after day 0 to day +3. The mean daily return curve is highest on day -2 and thereafter with a short decline again reaches almost at the same point on day 0. After that, the curve shows a small decline. The CDR curve shows a sharp increase after day -4 and reaches at the peak on day +3 and shows decline thereafter. This analysis shows that the market reacts to the event before its formal announcement as mean daily returns are highest on day -4. It is so because, much of the information is already disclosed in board meetings for buy-back, media announcements and stock exchange announcements. So the public announcement of open market share buy-backs generates less positive returns.
8 Fig 4.1 Market Reaction to Open Market Buy-back Announcements in BSE (CPRA) Conclusion The present paper investigated the impact of open market share buy-back announcements on share prices of BSE listed companies. Significant positive mean daily returns (MDR) are observed for two days observation period. Cumulative daily returns curve reaches at the peak on day +3. About 55% of open market share buyback events experience positive returns on the announcement day. Returns are positive even before the announcements i.e from day -3 to -1. It is so, because much of the information about share buy-backs is announced in board meetings, shareholders meetings and media announcements resulting in hike in prices in pre-announcement period. Further, it is seen that post-announcement returns are very small and mostly negative, but insignificant. This shows that market quickly absorbs all the information implying market being efficient in semi-strong form. The findings of this study are consistent with earlier studies in other markets suggesting that open market share buybacks are welcomed by the markets.
9 References Comment, R. and Jarrell, G.A. (1991), The Relative Signaling Power of Dutch-Auction and Fixed-Price Self-Tender Offers and Open-Market Share Repurchases, Journal of Finance, 46, Dhatt, G. K. (2010), Impact of Buyback announcements on Share Prices in India, The Indian Journal of Commerce, 63(3), Grullon. G., Michaely, R. (2004), The information content of share repurchase programs, Journal of Finance, 59, Gupta, A (2006), Share Price Behaviour Around Buybacks in India, ICFAI Journal of Applied Finance, 12(2), Hyderabad, R L (2009), Market Reaction to Buyback Announcement in India, ICFAI Journal of Applied Finance, 15(12), Ikenberry, D. L., Lakonishok, J. and Vermaelen, T. (1995), Market Underreaction to Open Market Share Repurchases, Journal of Financial Economics, 3, Ishwar, P (2010), Stock Price Responses to the Announcement of Buyback of Shares in India, Indian Journal of Commerce and Management Studies, 1(1), Kahle, K.M. (2002), When a Repurchase isn t a Repurchase: Open Market Repurchase and Employee Options, Journal of Financial Economics, 63, Kaur, K. and Singh B. (2003), Buy-Back Announcements and Stock Price Behavior: An Empirical Study, Journal of Applied Finance, 9(5), 23-30, (August).
10 Lasfer, M.A. (2002), The market valuation of share repurchases in Europe, Working paper, City University Business School. Masulis, R.W. (1980), Stock Repurchase by Tender offer: An Analysis of the Causes of Common Stock Price Changes, Journal of Finance, 35, Rau, R., Vermaelen, T. (2002), Regulation, taxes and share repurchases in the United Kingdom, Journal of Business, 75, Vermaelen, T. (1981), Common Stock Repurchases and Market Signaling, Journal of Financial Economics, 9, Woolridge, J.R. (1983), Dividend Changes and Security Prices, Journal of Finance, 38(5), , (December).
Open Market Repurchase Programs - Evidence from Finland
International Journal of Economics and Finance; Vol. 9, No. 12; 2017 ISSN 1916-971X E-ISSN 1916-9728 Published by Canadian Center of Science and Education Open Market Repurchase Programs - Evidence from
More informationMARKET REACTION TO MULTIPLE BUYBACKS IN INDIA
MARKET REACTION TO MULTIPLE BUYBACKS IN INDIA Abstract This paper examines the characteristics of share repurchasing firms and market reaction to multiple offers in India. The study finds limited offers
More informationCORPORATE ANNOUNCEMENTS OF EARNINGS AND STOCK PRICE BEHAVIOR: EMPIRICAL EVIDENCE
CORPORATE ANNOUNCEMENTS OF EARNINGS AND STOCK PRICE BEHAVIOR: EMPIRICAL EVIDENCE By Ms Swati Goyal & Dr. Harpreet kaur ABSTRACT: This paper empirically examines whether earnings reports possess informational
More informationInfluence of Reason to Repurchase on Company Performance
Influence of Reason to Repurchase on Company Performance Maurice Otten University of Twente P.O. Box 217, 7500AE Enschede The Netherlands ABSTRACT, In this study the question how does the reason to repurchase
More informationThe relationship between share repurchase announcement and share price behaviour
The relationship between share repurchase announcement and share price behaviour Name: P.G.J. van Erp Submission date: 18/12/2014 Supervisor: B. Melenberg Second reader: F. Castiglionesi Master Thesis
More informationShare repurchase announcements
Share repurchase announcements The influence of firm performances on the share price impact Master Thesis Finance Student name: Administration number: Study Program: Michiel (M.M.T.) van Lent S166433 Finance
More informationMarket Reaction to Actual Daily Share Repurchases in Greece
Market Reaction to Actual Daily Share Repurchases in Greece Angeliki Drousia, Athanasios Episcopos * and George N. Leledakis Department of Accounting and Finance Athens University of Economics and Business
More informationSeasonal Analysis of Abnormal Returns after Quarterly Earnings Announcements
Seasonal Analysis of Abnormal Returns after Quarterly Earnings Announcements Dr. Iqbal Associate Professor and Dean, College of Business Administration The Kingdom University P.O. Box 40434, Manama, Bahrain
More informationThe Wealth Effect of Share Buybacks: Evidence from Malaysia
The Wealth Effect of Share Buybacks: Evidence from Malaysia L. Y. CHONG a, M. N. ANNUAR a * AND M. A. ZARIYAWATI a a Department of Accounting and Finance, Universiti Putra Malaysia,43400, Malaysia ABSTRACT
More informationThe effect of share repurchases on stock returns in Europe from
The effect of share repurchases on stock returns in Europe from 2005-2015 Master Thesis Department of Finance Tilburg University Student: Marouane Ziani Administration number: 534262 Faculty: School of
More informationYear wise share price response to Annual Earnings Announcements
Year wise share price response to Annual Earnings Announcements Dr. Swati Mittal. Abstract The information content of earnings is an issue of obvious importance for investors. Company earnings announcements
More informationAnalysis of Stock Price Behaviour around Bonus Issue:
BHAVAN S INTERNATIONAL JOURNAL of BUSINESS Vol:3, 1 (2009) 18-31 ISSN 0974-0082 Analysis of Stock Price Behaviour around Bonus Issue: A Test of Semi-Strong Efficiency of Indian Capital Market Charles Lasrado
More informationStock Repurchases on a Second Trading Line
Stock Repurchases on a Second Trading Line Pierre-André DUMONT HEC-University of Geneva and FAME Dušan ISAKOV University of Fribourg and FAME Christophe PÉRIGNON Simon Fraser University Abstract: This
More informationCity, University of London Institutional Repository
City Research Online City, University of London Institutional Repository Citation: Andriosopoulos, D. (2010). Open Market Share Repurchases in Europe: A Cross Country Analysis. (Unpublished Doctoral thesis,
More informationLong-run Stock Performance following Stock Repurchases
Long-run Stock Performance following Stock Repurchases Ken C. Yook The Johns Hopkins Carey Business School 100 N. Charles Street Baltimore, MD 21201 Phone: (410) 516-8583 E-mail: kyook@jhu.edu 1 Long-run
More informationInsiders Trading around Open Market Share Repurchases: Evidence from the Taiwanese Stock Market
Insiders Trading around Open Market Share Repurchases: Evidence from the Taiwanese Stock Market Chia-Cheng Ho Department of Finance National Chung Cheng University 168, University Rd., Min-Hsiung Chia-Yi
More informationShare Repurchases in Europe:
Master Thesis Finance Share Repurchases in Europe: A View over Managerial Hubris, EU Regulations and Country Legal Origins. Author: João Diogo Correia de Matos (ANR: 202419) Supervisor: Fabio Castiglionesi
More informationAnalysis of Market Reaction Around the Bonus Issues in Indian Market
Analysis of Market Reaction Around the Bonus Issues in Indian Market Dhanya Alex Ph.D Associate Professor, FISAT Business School, Mookkannoor, Angamaly, Kochi, PO Box 683577, India Abstract When the companies
More informationOutline. The Impact of Share Repurchases on Closed-End Funds. Repurchases: Stylised Facts. Repurchases Now Equal Dividends in Magnitude
The Impact of Share Repurchases on Closed-End Funds Outline Jingfeng An * Gordon Gemmill # Dylan C. Thomas* November 5.Background and previous work on repurchases. How repurchases may affect closed-end
More informationThe Market Valuation of Share Repurchases in Europe
The Market Valuation of Share Repurchases in Europe M. Ameziane LASFER * City University Business School, London, UK. Abstract This paper investigates the share price behaviour around the announcement
More informationNot All Buybacks Are Created Equal: The Case of Accelerated Stock Repurchases
AHEAD OF PRINT Financial Analysts Journal Volume 66 Number 6 2010 CFA Institute Not All Buybacks Are Created Equal: The Case of Accelerated Stock Repurchases Allen Michel, Jacob Oded, and Israel Shaked
More informationA Comprehensive Examination of the Wealth Effects of Recent Stock Repurchase Announcements. Abstract
A Comprehensive Examination of the Wealth Effects of Recent Stock Repurchase Announcements Abstract In this paper we examine the wealth effect of stock repurchase announcements using a sample of 11,862
More informationSHAREHOLDER VALUE CREATION THROUGH BUYBACK OF EQUITY - AN EARNINGS PER SHARE MEASUREMENT ANALYSIS
SHAREHOLDER VALUE CREATION THROUGH BUYBACK OF EQUITY - AN EARNINGS PER SHARE MEASUREMENT ANALYSIS Prof. Abhijit Chakravarty, Assistant Professor, NCRD s Sterling Institute of Management Studies, Navi Mumbai.
More informationMarket Reaction to Bonus Issue in India: An Empirical Study
Market Reaction to Bonus Issue in India: An Empirical Study Rajesh Khurana Research Scholar, Chaudhary Devi Lal University Sirsa, Haryana Dr. D. P. Warne Chairperson, Department Of Commerce, Chaudhary
More informationOPEN MARKET SHARE REPURCHASES AND THEIR SIGNALING POWER: THE FRENCH EXPERIENCE,
OPEN MARKET SHARE REPURCHASES AND THEIR SIGNALING POWER: THE FRENCH EXPERIENCE, 1998-2006 Pierre-Emmanuel QUINTANA, HEC Paris Finance Major 2006 Under the direction of Ulrich HEGE, HEC Paris Associate
More informationSHAREHOLDER VALUE CREATION THROUGH BUYBACK OF EQUITY -AN EARNINGS PER SHARE MEASUREMENT ANALYSIS*
Indian Journal of Accounting Vol. XLIV (2) June 2013, pp. 1-5 SHAREHOLDER VALUE CREATION THROUGH BUYBACK OF EQUITY -AN EARNINGS PER SHARE MEASUREMENT ANALYSIS* ABSTRACT Prof. B. Ramesh * * Mr. Prabhakar
More informationInsider Trading Around Open Market Share Repurchase Announcements
Insider Trading Around Open Market Share Repurchase Announcements Waqar Ahmed a Warwick Business School, University of Warwick, UK Abstract Open market share buyback announcements are generally viewed
More informationStock split and reverse split- Evidence from India
Stock split and reverse split- Evidence from India Ruzbeh J Bodhanwala Flame University Abstract: This study expands on why managers decide to split and reverse split their companies share and what are
More informationThe Public Stock Buyback Tender Offer in France
Archives of Business Research Vol.5, No.4 Publication Date: April. 25, 2017 DOI: 10.14738/abr.54.2959. Khiari, W., & Mellouli, Y. (2017). The Public Stock Buyback Tender Offer in France. Archives of Business
More informationTHE EFFECT OF SHARE REPURCHASES ON STOCK PRICE PERFORMANCE
TILBURG UNIVERSITY THE EFFECT OF SHARE REPURCHASES ON STOCK PRICE PERFORMANCE Empirical evidences from The Netherlands and Belgium Master thesis Student name : Thanh Huyen Vu Student number : 1259219 Administration
More informationStock Repurchases in Canada: The Effect of History and Disclosure
Stock Repurchases in Canada: The Effect of History and Disclosure Comments welcome! James M. Moore PhD Candidate University of Waterloo October 10, 2005 jmooreca@sympatico.ca ABSTRACT Open market share
More informationInternational Journal of Marketing & Financial Management (IJMFM)
International Journal of Marketing & Financial Management (IJMFM) ISSN: 2348 3954 (Online) ISSN: 2349 2546 (Print) Available online at : http://www.arseam.com/content/volume- 2issue-5-june-2014 Email us:
More informationPrediction of open market share repurchases and portfolio returns: evidence from France, Germany and the UK
Prediction of open market share repurchases and portfolio returns: evidence from France, Germany and the UK Dimitris Andriosopoulos 1*, Chrysovalantis Gaganis 2, Fotios Pasiouras 3,4 1 Department of Accounting
More informationResearch Proposal. "Impact of "Buy back of shares" on Share Prices of the Companies Listed on NSE& BSE"
INSTITUTE OF MANAGEMENT J. K.LAKSHMIPAT UNIVERSITY JAIPUR (RAJ.) Research Proposal On "Impact of "Buy back of shares" on Share Prices of the Companies Listed on NSE& BSE" Faculty Guide: Submitted By: Dr.
More informationMarket Overreaction to Bad News and Title Repurchase: Evidence from Japan.
Market Overreaction to Bad News and Title Repurchase: Evidence from Japan Author(s) SHIRABE, Yuji Citation Issue 2017-06 Date Type Technical Report Text Version publisher URL http://hdl.handle.net/10086/28621
More information[FIRST DRAFT CURRENTLY COMPLETING DRAFT WITH DATA TO 2002] DO FIRMS BENEFIT FROM STOCK REPURCHASES?
[FIRST DRAFT CURRENTLY COMPLETING DRAFT WITH DATA TO 2002] DO FIRMS BENEFIT FROM STOCK REPURCHASES? Abstract Over the past few years, many firms have announced significant numbers of stock repurchases.
More informationImpact of Dividends on Share Price Performance of Companies in Indian Context
Impact of Dividends on Share Price Performance of Companies in Indian Context Kavita Chavali and Nusratunnisa School of Business - Alliance University, Bangalore Abstract The study aims at finding the
More informationREIT Stock Repurchases: Completion Rates, Long-Run Returns, and the
REIT Stock Repurchases: Completion Rates, Long-Run Returns, and the Straddle Hypothesis Authors Gregory L. Adams, James C. Brau, and Andrew Holmes Abstract This study of real estate investment trusts (REITs)
More informationAn Alternative Explanation for Stock Price Increases among the S&P 500 following a Stock Buyback Announcement
Volume and Issues Obtainable at Center for Sustainability Research and Consultancy Journal of Accounting and Finance in Emerging Economies ISSN: 2519-0318 ISSN (E) 2518-8488 Volume 3: Issue 2 December
More informationDo Corporate Managers Time Stock Repurchases Effectively?
Do Corporate Managers Time Stock Repurchases Effectively? Michael Lorka ABSTRACT This study examines the performance of share repurchases completed by corporate managers, and compares the implied performance
More informationInformation Asymmetry, Signaling, and Share Repurchase. Jin Wang Lewis D. Johnson. School of Business Queen s University Kingston, ON K7L 3N6 Canada
Information Asymmetry, Signaling, and Share Repurchase Jin Wang Lewis D. Johnson School of Business Queen s University Kingston, ON K7L 3N6 Canada Email: jwang@business.queensu.ca ljohnson@business.queensu.ca
More informationThe market reactions to share repurchase announcements on the JSE: an event study
The market reactions to share repurchase announcements on the JSE: an event study AUTHORS ARTICLE INFO DOI JOURNAL Kiran Punwasi Pradeep Brijlal Kiran Punwasi and Pradeep Brijlal (2016). The market reactions
More informationDoes Prior Record Matter in the Wealth Effect of Open-Market. Share Repurchase Announcement? Shao-Chi Chang 1. Sheng-Syan Chen 2.
Does Prior Record Matter in the Wealth Effect of Open-Market Share Repurchase Announcement? Shao-Chi Chang 1 Sheng-Syan Chen 2 Li-Yu Chen 3 Abstract This study investigates if prior record of share repurchases
More informationDerivative Strategies for Share Repurchases
Derivative Strategies for Share Repurchases Wojciech Grabowski, Assistant Professor, Department of Economics, University of Warsaw 1. Introduction The scale of share repurchases in the last decade generated
More informationThe Role of Management Incentives in the Choice of Stock Repurchase Methods. Ata Torabi. A Thesis. The John Molson School of Business
The Role of Management Incentives in the Choice of Stock Repurchase Methods Ata Torabi A Thesis In The John Molson School of Business Presented in Partial Fulfillment of the Requirements for the Degree
More informationManagerial Insider Trading and Opportunism
Managerial Insider Trading and Opportunism Mehmet E. Akbulut 1 Department of Finance College of Business and Economics California State University Fullerton Abstract This paper examines whether managers
More informationThe Credibility of Stock Repurchase Signals
The Credibility of Stock Repurchase Signals Chao Chen* California State University, Northridge and Min-Ming Wen Shippensburg University * Corresponding author: Department of Finance, College of Business
More informationMarket Performance on Resale of Treasury Shares
Market Performance on Resale of Treasury Shares Rohaida Abdul Latif, PhD, CFP. Senior Lecturer School of Accountancy, College of Business, University Utara Malaysia, Kedah 06010 Malaysia Kamarun Nisham
More informationThe SEC Disclosure Requirement and Directors Turnover Around Stock Repurchase
International Journal of Economics and Finance; Vol. 9, No. 12; 2017 ISSN 1916-971X E-ISSN 1916-9728 Published by Canadian Center of Science and Education The SEC Disclosure Requirement and Directors Turnover
More informationInformation Content, Signalling Hypothesis and Share Repurchase Programs in Poland
Information Content, Signalling Hypothesis and Share Repurchase Programs in Poland elżbieta wrońska-bukalska Maria Curie-Sklodowska University, Poland elzbieta.bukalska@umcs.lublin.pl The article aims
More informationAnqi Guo B. E., Guangdong University of Foreign Studies, 2008 and. Jing Nie B.E., Beijing Language and Culture University, 2006
PREDICTABILITY OF STOCK RETURNS AND OPEN MARKET REPURCHASES by Anqi Guo B. E., Guangdong University of Foreign Studies, 2008 and Jing Nie B.E., Beijing Language and Culture University, 2006 PROJECT SUBMITTED
More informationPrivately Negotiated Repurchases and Monitoring by Block Shareholders
Privately Negotiated Repurchases and Monitoring by Block Shareholders Murali Jagannathan College of Management Binghamton University Binghamton, NY 607.777.4639 Muralij@binghamton.edu Clifford Stephens
More informationSTOCK REPURCHASE ANNOUNCEMENTS AND STOCK PRICES EVIDENCE FROM TAIWAN
The International Journal of Business and Finance Research Volume 5 Number 1 2011 STOCK REPURCHASE ANNOUNCEMENTS AND STOCK PRICES EVIDENCE FROM TAIWAN Li-Hua, Lin, Transworld Instute of Technology, Taiwan
More informationA STUDY ON THE IMPACT OF DIVIDEND ON STOCK PRICES
A STUDY ON THE IMPACT OF DIVIDEND ON STOCK PRICES Dr. Mohammed Arif Pasha, Director, Brindavan College of PG Studies, Bangalore, Karnataka, India. M. Nagendra, Assistant Professor, Brindavan College of
More informationThe Nature and Persistence of Buyback Anomalies
The Nature and Persistence of Buyback Anomalies Urs Peyer INSEAD and Theo Vermaelen* INSEAD May 2007 Urs Peyer and Theo Vermaelen, INSEAD, Boulevard de Constance, 77305 Fontainebleau, France. Email: urs.peyer@insead.edu
More informationA Study on the Impact of Dividend Announcement on Stock Price
Journal of Advance in Social Science and Humanities ISSN: 2395-6542 CrossRef DOI: http://dx.doi.org/10.15520/jassh35224. A Study on the Impact of Dividend Announcement on Stock Price Amit Balkrishna Joshi
More informationDividends and Share Repurchases: Effects on Common Stock Returns
Dividends and Share Repurchases: Effects on Common Stock Returns Nell S. Gullett* Professor of Finance College of Business and Global Affairs The University of Tennessee at Martin Martin, TN 38238 ngullett@utm.edu
More informationWorking Paper. Can Managers Time the Market? Evidence Using Repurchase Price Data
= = = = Working Paper Can Managers Time the Market? Evidence Using Repurchase Price Data Amy K. Dittmar Stephen M. Ross School of Business University of Michigan Laura Casares Field Smeal College of Business
More informationRepurchases Have Changed *
Repurchases Have Changed * Inmoo Lee, Yuen Jung Park and Neil D. Pearson June 2017 Abstract Using recent U.S. data, we find that the long-horizon abnormal returns following repurchase announcements made
More informationM&A ANNOUNCEMENT AND SHAREHOLDER S WEALTH: TARGET COMPANY
CHAPTER 5 M&A ANNOUNCEMENT AND SHAREHOLDER S WEALTH: TARGET COMPANY While an acquiring company is expected to create value through synergies when it acquires a target company, the shareholders of target-company
More informationThe Dividend Puzzle: A Summary Review of Explanations
Journal of Finance and Investment Analysis, vol. 3, no.4, 2014, 31-37 ISSN: 2241-0998 (print version), 2241-0996(online) Scienpress Ltd, 2014 The Dividend Puzzle: A Summary Review of Explanations Kwok-Chiu
More informationShare Repurchases in the Banking Industry:
Share Repurchases in the Banking Industry: The Undervaluation Hypothesis Investigated Document: Author: Master Thesis Theresa M. Hoogendorp Administration Number: 257447 Program: Department: Supervisor:
More informationHow do stock prices react to change in dividends?
2016; 2(5): 384-388 ISSN Print: 2394-7500 ISSN Online: 2394-5869 Impact Factor: 5.2 IJAR 2016; 2(5): 384-388 www.allresearchjournal.com Received: 18-03-2016 Accepted: 19-04-2016 Dr. R. Sharmila Associate
More informationInternational Journal of Informative & Futuristic Research ISSN:
www.ijifr.com Volume 4 Issue 11 July 2017 International Journal of Informative & Futuristic Research ISSN: 2347-1697 The Impact of Stock Splits on Stock Liquidity and Investor Wealth Creation Paper ID
More informationImpact of SBI & SBT Merger Events on Shareholders Wealth
DOI : 10.18843/ijms/v5iS5/15 DOIURL :http://dx.doi.org/10.18843/ijms/v5is5/15 Impact of SBI & SBT Merger Events on Shareholders Wealth Nadeer P., Research Scholar, Department of Commerce and Management
More informationThe Price Dynamics Around Sensex Reconstitutions
The Price Dynamics Around Sensex Reconstitutions Vijaya B Marisetty*, AV Vedpuriswar** The price dynamics around index reconstitutions has been tested for an emerging market. Unlike developed markets like
More informationSTOCK REPURCHASES WITH LEGAL RESTRICTIONS. EVIDENCE FROM SPAIN
STOCK REPURCHASES WITH LEGAL RESTRICTIONS. EVIDENCE FROM SPAIN VÍCTOR M. GONZÁLEZ and FRANCISCO GONZÁLEZ * University of Oviedo Department of Business Administration and Accounting Avda. del Cristo s/n
More informationDIVIDEND SIGNALING HYPOTHESIS A CASE STUDY OF BSE SENSEX COMPANIES
Tactful Management Research Journal Vol. 2, Issue. 4, Jan 2014 ISSN :2319-7943 ORIGINAL ARTICLE Impact Factor : 0.119 (GIF) DIVIDEND SIGNALING HYPOTHESIS A CASE STUDY OF BSE SENSEX COMPANIES SAVITA Research
More informationDIPLOMARBEITEN / MASTER THESES IM HWS 2011
Universität Mannheim Lehrstuhl für Internationale Finanzierung 68131 Mannheim DIPLOMARBEITEN / MASTER THESES IM HWS 2011 Besucheradresse: L9, 1-2 68161 Mannheim Telefon 0621/181-1619 Telefax 0621/181-1664
More informationValuation Effects of Greek Stock Dividend Distributions
European Financial Management, Vol. 6, No. 4, 2000, 515±531 Valuation Effects of Greek Stock Dividend Distributions George J. Papaioannou Frank G. Zarb School of Business, Hofstra University, Hempstead,
More informationMarket reaction to tender and private offers on the JSE
S.Afr.J.Bus.Manage.2017,48(4) 1 Market reaction to tender and private offers on the JSE N. Wesson a *, C. Muller b and M. Ward b a University of Stellenbosch Business School, PO Box 610, Bellville, 7535,
More informationEarnings Information and Stock Market Efficiency
American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS) ISSN (Print) 23134410, ISSN (Online) 23134402 Global Society of Scientific Research and Researchers http://asrjetsjournal.org/
More informationDo managers intentionally use repurchase tender offers to signal private information? Evidence from firm financial reporting behavior $
Journal of Financial Economics 85 (2007) 205 233 www.elsevier.com/locate/jfec Do managers intentionally use repurchase tender offers to signal private information? Evidence from firm financial reporting
More informationInternational Journal of Management (IJM), ISSN (Print), ISSN (Online), Volume 5, Issue 3, March (2014), pp.
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976-6510(Online), ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 5, Issue 3, March
More informationTransferring Shares to Employees or Directors: Exploring the Effect of Board Duality on Share Repurchase in Taiwan
Asian Journal of Business and Accounting, 5(1), 2012, 1-26 ISSN 1985-4064 Transferring Shares to Employees or Directors: Exploring the Effect of Board Duality on Share Ni-Yun Chen * and Te-Kuan Lee Abstract
More informationShare Repurchases and Repayments of Nominal Value: The Swiss Alternative to Dividends
Share Repurchases and Repayments of Nominal Value: The Swiss Alternative to Dividends Philippe Mueller Columbia Business School First Draft: January, 2005 This Version: November 18, 2005 JEL Classification:
More informationEffect of earnings management on firms stock repurchases behavior
Effect of earnings management on firms stock repurchases behavior ABSTRACT Randall Zhaohui Xu University of Houston-Clear Lake Gary K. Taylor University of Alabama Prior studies find that firms demonstrate
More informationSHORT RUN & LONG RUN PERFORMANCE OF IPO & FPO INDIAN STOCK MARKET
Abstract SHORT RUN & LONG RUN PERFORMANCE OF IPO & FPO INDIAN STOCK MARKET By Bhakti Mulchandani (Chandni Gerelani) Now-a-days, Initial Public Offer (IPO) has become one of the preferred investments for
More informationRisk & return analysis of performance of mutual fund schemes in India
2018; 4(1): 279-283 ISSN Print: 2394-7500 ISSN Online: 2394-5869 Impact Factor: 5.2 IJAR 2018; 4(1): 279-283 www.allresearchjournal.com Received: 15-11-2017 Accepted: 16-12-2017 Dr. V Chitra Department
More informationWeak Form Efficiency of Gold Prices in the Indian Market
Weak Form Efficiency of Gold Prices in the Indian Market Nikeeta Gupta Assistant Professor Public College Samana, Patiala Dr. Ravi Singla Assistant Professor University School of Applied Management, Punjabi
More informationAsian Economic and Financial Review THE CAPITAL INVESTMENT INCREASES AND STOCK RETURNS
Asian Economic and Financial Review ISSN(e): 2222-6737/ISSN(p): 2305-2147 journal homepage: http://www.aessweb.com/journals/5002 THE CAPITAL INVESTMENT INCREASES AND STOCK RETURNS Jung Fang Liu 1 --- Nicholas
More informationThe Price Impact and Timing of Actual Share Repurchases in Norway
NHH, NORWEGIAN SCHOOL OF ECONOMICS MASTER THESIS IN FINANCE BERGEN, FALL 2015 The Price Impact and Timing of Actual Share Repurchases in Norway Authors: Daniel Bratli Obaidur Rehman Thesis advisor: Prof.
More informationRESEARCH PROPOSAL PRICE BEHAVIOR AROUND BLOCK TRADES ON THE NATIONAL STOCK EXCHANGE, INDIA
RESEARCH PROPOSAL PRICE BEHAVIOR AROUND BLOCK TRADES ON THE NATIONAL STOCK EXCHANGE, INDIA BACKGROUND Although it has been empirically observed that information about block trades has mixed signaling effect
More informationComparative Analysis of Different Banks
Comparative Analysis of Different Vivek Srivatsva #1, Dr M L Maurya *2 Abstract The economic reforms in India started in early nineties, but their outcome is visible now. Major changes took place in the
More informationIMPACT OF DEMONETIZATION ON STOCK MARKET: EVENT STUDY METHODOLOGY
Indian Journal of Accounting (IJA) 127 ISSN : 0972-1479 (Print) 2395-6127 (Online) Vol. XLIX (1), June, 2017, pp. 127-132 IMPACT OF DEMONETIZATION ON STOCK MARKET: EVENT STUDY METHODOLOGY Swati Chauhan
More informationThe Effect of FASB Statement No. 123R on Stock Repurchases: An Empirical Examination of Management Incentives. November 15, 2013.
The Effect of FASB Statement No. 123R on Stock Repurchases: An Empirical Examination of Management Incentives Steve Hegemann Iuliana Ismailescu November 15, 2013 Abstract This study examines management
More informationIJMSS Vol.04 Issue-03 (March, 2016) ISSN: International Journal in Management and Social Science (Impact Factor )
(Impact Factor- 5.276) THE APPLICATION OF ECONOMIC VALUE ADDED: AN EMPIRICAL ANALYSIS ON INDIAN BANKING INDUSTRY V. BHAGYAMMA Assistant Professor, Department of Business Administration, Annamacharya Institute
More informationBuybacks Around the World
Buybacks Around the World Alberto Manconi Urs Peyer Theo Vermaelen* 2 September 2013 Abstract This paper documents that outside the U.S. short-term returns around share repurchase announcements are positive,
More informationThe Nature and Persistence of Buyback Anomalies
The Nature and Persistence of Buyback Anomalies Urs Peyer and Theo Vermaelen INSEAD November 2005 ABSTRACT Using recent data on buybacks, we reject the hypothesis that the market has become more efficient
More informationInstitutional Foresight Do institutions profit from repurchase announcements?
Institutional Foresight Do institutions profit from repurchase announcements? Vinh Huy Nguyen 1 Suchismita Mishra 2 Pankaj Jain 3 JEL Classification: D82, G14, G20, G35 Key Words: Repurchase announcements,
More informationInvestors Attitude Towards Mutual Fund (Special Reference to Chikkamagalore District, Karnataka State, India)
Investors Attitude Towards Mutual Fund (Special Reference to Chikkamagalore District, Karnataka State, India) 1 Subramanya P R, 2 Dr. T P Renuka Murthy 1 Dept. of Finance HRIHE, Hassan, Karnataka, India
More informationOperating performance following open market share repurchase announcements $
Journal of Accounting and Economics 39 (2005) 411 436 www.elsevier.com/locate/jae Operating performance following open market share repurchase announcements $ Erik Lie Henry B. Tippie College of Business,
More informationIndian Institute of Management Calcutta. Working Paper Series. WPS No. 798 April 2017
Indian Institute of Management Calcutta Working Paper Series WPS No. 798 April 2017 Impact of Stock Splits on Returns: Evidence from Indian Stock Market Binay Bhushan Chakrabarti Retd. Professor, Indian
More informationInterrelationship between Profitability, Financial Leverage and Capital Structure of Textile Industry in India Dr. Ruchi Malhotra
Interrelationship between Profitability, Financial Leverage and Capital Structure of Textile Industry in India Dr. Ruchi Malhotra Assistant Professor, Department of Commerce, Sri Guru Granth Sahib World
More informationIMPACT OF MERGER ON FIRM PERFORMANCE AND SHAREHOLDER WEALTH: A STUDY OF ICICI BANK & BANK OF RAJASTHAN
IMPACT OF MERGER ON FIRM PERFORMANCE AND SHAREHOLDER WEALTH: A STUDY OF ICICI BANK & BANK OF RAJASTHAN Noufal Ck, Research Scholar, Department of Commerce, Mangalore University, Mangalore, Karnataka, India.
More informationD. Agus Harjito Faculty of Economics, Universitas Islam Indonesia
ISSN : 1410-9018 SINERGI KA JIAN BISNIS DAN MANAJEMEN Vol. 8 No. 1, Januari 2006 Hal. 1-12 THE EFFECT OF MERGER AND ACQUISITION ANNOUNCEMENTS ON STOCK PRICE BEHAVIOUR AND FINANCIAL PERFORMANCE CHANGES:
More informationMarket Efficiency around Bonus, Stock Split and Rights Issue Announcement Evidence from India
Market Efficiency around Bonus, Stock Split and Rights Issue Announcement Evidence from India Suresha B 1 Chandrashekara B 2 1.Rayalaseema University, Kurnool 518002, Department of Management Studies,
More informationJOHANN WOLFGANG GOETHE-UNIVERSITÄT FRANKFURT AM MAIN
JOHANN WOLFGANG GOETHE-UNIVERSITÄT FRANKFURT AM MAIN FACHBEREICH WIRTSCHAFTSWISSENSCHAFTEN Andreas Hackethal and Alexandre Zdantchouk Share Buy-Backs in Germany Overreaction to Weak Signals? No. 128 April
More informationFinancial Performance Analysis of Selected Banks using CAMEL Approach
IMR (Indira Management Review) Volume XI, Issue II, December 2017 Financial Performance Analysis of Selected Banks using CAMEL Approach Vijay Hemant Sonaje 1 and Dr. Shriram S. Nerlekar 2 1 Assistant Professor,
More informationStock Repurchase as an Alternative to Dividend Payout: Evidence. from the Warsaw Stock Exchange
Stock Repurchase as an Alternative to Dividend Payout: Evidence from the Warsaw Stock Exchange Sebastian Gryglewicz Poznan University of Economics, Poland March 16, 2004 Abstract The paper investigates
More information