The Differential Information Conveyed by Share Repurchase Tender Offers and Dividend Increases

CFA Digest ◽  
1998 ◽  
Vol 28 (3) ◽  
pp. 8-9
Author(s):  
Joseph Vu
Keyword(s):  
Differential Information ◽  
Share Repurchase ◽  
Tender Offers ◽  
Dividend Increases

Share repurchase tender offers and bid–ask spreads

2001 ◽  
Vol 25 (3) ◽  
pp. 445-478 ◽  
Author(s):  
Hee-Joon Ahn ◽  
Charles Cao ◽  
Hyuk Choe
Keyword(s):  
Share Repurchase ◽  
Tender Offers ◽  
Bid Ask Spreads

scholarly journals Market reaction to tender and private offers on the JSE

2017 ◽  
Vol 48 (4) ◽  
pp. 1-11 ◽  
Author(s):  
N. Wesson ◽  
C. Muller ◽  
M. Ward
Keyword(s):  
South African ◽  
Market Share ◽  
Market Reaction ◽  
Abnormal Returns ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Open Market ◽  
Significant Information ◽  
Tender Offers ◽  
Open Market Share Repurchases

Investors can benefit when incorporating the information-signalling effect of share repurchases in their investment strategies. Previous South African studies on open market share repurchases confirmed the globally observed signalling-effect, but found open market share repurchases not to be the outright favoured share repurchase type in this country – as is the case globally. The present study is the first to examine the market reaction to the preferred share repurchase type, namely specific (or tender and private offers) share repurchases, in the South African regulatory environment. Abnormal returns were calculated using a 12-parameter benchmark over a four-year event window, for share repurchases announced from 1999 to 2009. Pro rata tender offers were found not to possess information-signalling benefits, but significant excess returns subsequent to the announcement date were reported for the two private offer types (namely other specific offers and the repurchase by the holding company of shares held by subsidiaries). The other specific offers were found to possess significant information-signalling benefits – especially over the long term and in respect of value companies.

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.

The Share Repurchase Announcement Puzzle: Theory and Evidence

CFA Digest ◽  
2016 ◽  
Vol 46 (11) ◽  
Author(s):  
Paul R. Rossi
Keyword(s):  
Share Repurchase

Why do Firms Undertake Accelerated Share Repurchase Programs?

2008 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Yingmei Cheng ◽  
Tianming (Tim) Zhang
Keyword(s):  
Share Repurchase ◽  
Repurchase Programs
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