aalto1 untyped-item.component.html
Share repurchases: Abnormal performance and motives behind the announcements
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
Authors
Date
Department
Major/Subject
Mcode
Degree programme
Language
en
Pages
29+5
Series
Abstract
In this paper I study the short- and long-term abnormal returns around open-market share repurchase program announcements. I focus on announcements in Western Europe from 1990 to 2020. Additionally, I obtain cross-sectional regressions aiming to understand the factors causing the abnormalities. I find statistically significant announcement returns of 1.06% and long-term cumulative abnormal returns of 14.2%. The closer examination of the returns does not suggest that either short-term or long-term returns are in decline. The results fail to find an explicit explanation for the initial impact of the announcement, such as the signaling undervaluation hypothesis or agency theory.