Share Repurchase Announcements Together with Earnings Forecast Revisions and Long-Term Stock Performance: Evidence from Japan

2014 ◽  
Author(s):  
Yoshinori Shimada
Keyword(s):  
Earnings Forecast ◽  
Share Repurchase ◽  
Stock Performance ◽  
Forecast Revisions ◽  
Repurchase Announcements

scholarly journals Market underreaction to open market share repurchases on the JSE

2014 ◽  
Vol 45 (4) ◽  
pp. 59-69 ◽  
Author(s):  
N. Wesson ◽  
C. Muller ◽  
M. Ward
Keyword(s):  
South African ◽  
Market Share ◽  
Abnormal Returns ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Open Market ◽  
Repurchase Announcements ◽  
Long Term Performance ◽  
Term Performance

This study examined the long-term performance of open market share repurchase announcements made by companies listed on the JSE during their reporting periods including 1 July 1999 to 2009. A total of 195 open market share repurchase announcements were identified. A maximum outperformance of about 35% was found on day t+550 (about two years subsequent to the announcement). After splitting the sample into 'value' (low P/E ratio) and 'growth' shares (high P/E ratio), it was found that the outperformance was almost entirely confined to the value portfolio, reaching a maximum of about 80% by day t+630 (about two-and-a-halfyears subsequent to the announcement). This study applied a more robust research methodology than used in earlier South African research on this topic; it also used an improveddataset and extended the research period, compared to other research. The results of this study showed much higher positive abnormal returns than were found in earlier international and South African studies. Investors should takeadvantage of the informational value of open market repurchase announcements and the related significant abnormal returns to be earned.

The Effects of Share Repurchase Announcements on Returns in the Malaysia Stock Market

2018 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Tze San Ong ◽  
Pei San Ng
Keyword(s):  
Stock Market ◽  
Abnormal Return ◽  
Small Firms ◽  
Abnormal Returns ◽  
Share Repurchase ◽  
Before And After ◽  
Positive Abnormal Return ◽  
Repurchase Announcements ◽  
Signaling Hypothesis ◽  
Firm Characteristic

This paper examines the market response surrounding the share repurchase announcements of Malaysia Listed Companies from years 2012 to 2016. One sample T-test was carried out to identify the abnormal return in the range before and after 20 days from share repurchase announcements. The result shows a significant positive abnormal return in the day of repurchase announcements and continuously until day 1 after the announcements. Multiple regression analysis was performed in order to identify the firm characteristic of share repurchase. The finding is supported with information asymmetric, which shows that stock market reacts more favorably through the repurchase announcements by small firms than large firms. This study is consistent with the signaling hypothesis that shows share repurchase announcement can be an effective tool in stabilizing the stock market in Malaysia. The finding of this study acts as a useful tool for managers and investors to improve their decisions on share repurchase announcements in Malaysia. Company’s managers can conduct share repurchase announcements that are able to make the stock market react positively in order to generate positive abnormal returns.

Informed Trading in Option Markets around Accelerated Share Repurchase Announcements

2017 ◽  
Author(s):  
Ladshiya Atisoothanan ◽  
Balasingham Balachandran ◽  
Huu Nhan Duong ◽  
Michael F. Theobald
Keyword(s):  
Informed Trading ◽  
Share Repurchase ◽  
Option Markets ◽  
Repurchase Announcements

The Announcement Effects of Restricted Open Market Share Repurchases: Experience from Taiwan

2004 ◽  
Vol 07 (03) ◽  
pp. 335-354 ◽  
Author(s):  
Miawjane Chen ◽  
Chao-Liang Chen ◽  
Wan-Hsiu Cheng
Keyword(s):  
Abnormal Returns ◽  
Free Cash Flow ◽  
Share Repurchase ◽  
Open Market ◽  
Announcement Effects ◽  
Significant Difference ◽  
Repurchase Announcements ◽  
Free Cash Flow Hypothesis ◽  
Managerial Choice ◽  
Signaling Hypothesis

In this paper we empirically examine the effects of 451 restricted share repurchase announcements in Taiwan. Their 3-day cumulative abnormal returns are all significantly positive for different purposes and Tobin's qs. However, there is no significant difference in abnormal returns for different repurchasing purposes. This indicates that mandating a purpose is not really an effective tool for limiting managerial choice. Moreover, when the related variables are controlled, the other empirical results we conducted indicate that, at least in Taiwan, the traditional signaling hypothesis and the free cash flow hypothesis can function simultaneously to explain the effects of the restricted repurchase announcements.

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