| Nimeke: | Stock Repurchase Authorizations - Finnish Companies |
| Muu nimeke: | Osakkeiden takaisinosto valtuutukset – Suomalaiset yhtiöt |
| Tekijä: | Almgren, Esa |
| Muu tekijä: | Lappeenrannan teknillinen yliopisto, Kauppatieteellinen tiedekunta, Talouden ja yritysjuridiikan laitos, Rahoitus / Lappeenranta University of Technology, School of Business, Business Economics and Law, Finance |
| Päiväys: | 2012 |
| Tiivistelmä: | The aim of this study is to examine the abnormal market reaction caused
by share repurchase authorizations. We study this abnormal reaction from five different angles. First four concentrate on average abnormal returns while the fifth concentrates on cumulative abnormal return. Data consists of 508 share repurchase authorization from Finnish stock market. Event study methodology is used to examine the stock price reaction and regression analysis is used to find correlation between actual buybacks and abnormal returns. The empirical results show that markets do usually react positively to share repurchase authorizations. There are some differences depending which of the five angles the abnormal returns are being examined. Statistically we can confirm that some authorization give positive reaction while others do not. Also we didn’t find a statistically significant positive correlation between actual buybacks and abnormal returns. |
| Avainsanat: | Share repurchase; share repurchase authorization; market reaction; event study; Finnish stock market; abnormal return |
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