The market reactions to share repurchase announcements on the JSE: an event study. Investment Management and Financial Innovations

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dc.contributor.authorPunwasi, Kiran
dc.contributor.authorBrijlal, Pradeep
dc.date.accessioned2018-06-07T10:17:13Z
dc.date.available2018-06-07T10:17:13Z
dc.date.issued2016
dc.description.abstractThis study examines the market reactions to share repurchase announcements made by companies listed on the Johannesburg Stock Exchange from the years 2003 to 2012. The authors use an event study methodology and the Capital Asset Pricing Model to determine if there was an announcement effect when a share repurchase announcement is made. The analyses reveal that consistent with signalling theory and the announcement effect, share repurchase announcements are associated with positive abnormal returns. The average abnormal return and cumulative average abnormal return noted was 0.46% and 3.81%, respectively, for the event period (t-20, t+20). There was an observable trend of declining share prices before the share repurchase announcement. The authors also found no significant evidence that repurchasing firms have market timing ability when executing a share repurchase announcement. From a value investor’s perspective, a share repurchase program conveys a very strong signal of a healthy company.en_US
dc.description.accreditationIBSS
dc.identifier.citationPunwasi, K. & Brijlal, P. (2016). The market reactions to share repurchase announcements on the JSE: an event study. Investment Management and Financial Innovations , 13(1-1).en_US
dc.identifier.issn1810-4967
dc.identifier.urihttp://dx.doi.org/10.21511/imfi.13(1- 1).2016.06
dc.identifier.urihttp://hdl.handle.net/10566/3790
dc.language.isoenen_US
dc.privacy.showsubmitterFALSE
dc.publisherLLC Consulting Publishing Companyen_US
dc.rights© Kiran Punwasi, Pradeep Brijlal, 2016. This publication is an open access article.
dc.status.ispeerreviewedTRUE
dc.subjectMarket reactionen_US
dc.subjectShare repurchase announcementen_US
dc.subjectAverage abnormal returnsen_US
dc.titleThe market reactions to share repurchase announcements on the JSE: an event study. Investment Management and Financial Innovationsen_US
dc.typeArticleen_US

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