The information content of share repurchases – evidence from Poland

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Show simple item record Wrońska-Bukalska, Elżbieta Kaźmierska-Jóźwiak, Bogna Rozkovec, Jiri
dc.contributor.other Ekonomická fakulta cs 2018-06-28 2018-06-28 2018-06-28
dc.identifier.issn 1212-3609
dc.description.abstract Announcements of open market repurchase programmes have recently become common not only in the United States but also in many other, less developed countries. The aim of the paper is to examine the market reaction to share repurchase announcements and to investigate the reasons for the market reaction. There is a good deal of research referring to the share repurchases, even in Poland, the originality of our approach is that we conducted our research on an alternative system of trading to the Warsaw Stock of Exchange, namely NewConnect. NewConnect is dedicated to young, small and innovative companies. We found it extremely interesting that such companies in need of external financing take the decision to distribute cash and implement share repurchase. The data was collected for 64 share repurchase announcements over the period 2007-2016. In this study cumulative average abnormal returns are applied to identify the market reaction. To investigate the factors which drive investor behaviour we applied the regressions model. We employed some explanatory variables describing the agency theory and signalling hypotheses: relative payout, market to book ratio, operational cash flow, and debt ratio. We found that cumulative average abnormal returns around the share repurchase date are significant at standard levels of confidence in all the analysed event windows. The results of the multivariate and univariate regression analyses do not support the undervaluation hypothesis, as we expected. en
dc.format text
dc.format.extent 14 stran cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
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dc.relation.ispartof Economics and Management en
dc.rights CC BY-NC
dc.subject share repurchase en
dc.subject event study en
dc.subject market reaction en
dc.subject signaling theory en
dc.subject agency theory en
dc.subject.classification G14
dc.subject.classification G35
dc.title The information content of share repurchases – evidence from Poland en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2018-2-012
dc.identifier.eissn 2336-5604
local.relation.volume 21
local.relation.issue 2
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 172
local.citation.epage 185
local.access open
local.fulltext yes
local.filename EM_2_2018_12

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