We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Share Buyback and Announcement Effects: An Industry Wise Analysis.
- Authors
Gupta, Monika
- Abstract
Share buyback is considered as a significant tool of financial restructuring and has gained popularity around the world during last few decades. The aim of the present study is to find out the effects of buyback announcement on the price movements in the market. The impact of buyback announcement has also been analysed for different industries. The objective is to find out whether particular type of industry has any effect on the announcement returns or not. The companies listed on BSE and announced buyback during 2000 to 2015 through open market repurchase has been taken for the study. Event study methodology has been applied to find out the presence of abnormal returns considering 20 days before and 20 days after the buyback announcement. Regression analysis has been used to analyse the significant difference in the announcement returns of different industries. The study observes that the buyback announcement provides the abnormal returns but for a shorter period of time. Industry wise analysis observes the abnormal returns only in case of manufacturing and other sectors and concludes that the industry does not have any role to play in the presence of buyback announcement returns.
- Subjects
REDEMPTION of securities; CORPORATE reorganizations; STOCK prices; RATE of return; STOCK repurchasing; BUSINESS announcements; MANUFACTURING industries
- Publication
FIIB Business Review, 2017, Vol 6, Issue 2, p43
- ISSN
2319-7145
- Publication type
Article
- DOI
10.29368/FIIB.6.2.2017.43-50