IDEAS home Printed from https://ideas.repec.org/a/ids/ijbema/v5y2013i3p268-282.html
   My bibliography  Save this article

Impact of buy-back: empirical study on Indian markets

Author

Listed:
  • Arun Kumar Gopalaswamy

Abstract

This study empirically investigates the behaviour of share prices around share buy-back announcements by Indian firms using a standard event methodology. It was observed that there was a significant market reaction to the buy-back announcements during the announcement period viz. the announcement date and the day prior to it. The market reaction t persists on the first day after the announcement of buy-backs regardless of the buy-back mechanisms adopted by the firms. The analysis suggests that the share prices which recorded a rapid decline prior to the buy-back announcement remained almost constant for a few days immediately following the announcement and then declined again, but at a much slower pace. A pattern similar to that of the post announcement period was also observed after the occurrence of actual buy-back. This study also examines the firms' choice of repurchase mechanism, and the link between those choices and the share price reaction.

Suggested Citation

  • Arun Kumar Gopalaswamy, 2013. "Impact of buy-back: empirical study on Indian markets," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 5(3), pages 268-282.
    • Handle: RePEc:ids:ijbema:v:5:y:2013:i:3:p:268-282
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=54940
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbema:v:5:y:2013:i:3:p:268-282. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=249 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.