Information Content of Share Repurchase Programs
The article aims to present the meaning of the share repurchase programs and to identify the reasons of share repurchase made by companies. The reasons of share repurchasing contain the information that companies wish to convey to their shareholders. Once the reasons of share repurchase are identified it would be possible to find out what signal they transmit to shareholders. The article analyses selected statistical data on the listed companies that repurchased their shares from selected countries. It also focuses on the reasons of share repurchase of the listed companies. Having carried out research for the selected listed companies, I found that share repurchases are not used to signal only the excessive amounts of cash hold in the corporation. There are also other reasons for share repurchase. These reasons might comprise the following: changing the structure of ownership or stabilizing the market share prices. And companies might use share repurchases for conveying different information to their shareholders. The conclusions drawn from my observations and statistical data may constitute a viable basis for more comprehensive research. One possible direction of such research is to determine the financial situation of companies repurchasing their shares. Another possible direction of research is to identify the financial market condition of the company repurchasing their shares. The article attempts to discuss the reasons of share repurchase programs. The uniqueness of this approach lies in analysing share repurchase in a broader sense, where it is viewed not to be a mere substitution for dividends.
|This chapter was published in: Elzbieta Wronska , , pages 213-220, 2013.|
|This item is provided by ToKnowPress in its series Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013 with number 213-220.|
|Contact details of provider:|| Web page: http://www.toknowpress.net/proceedings/978-961-6914-02-4/|
When requesting a correction, please mention this item's handle: RePEc:tkp:mklp13:213-220. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nada Trunk Širca)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.