BUY BACK OF SHARES IN INDIA: IMPACT ON STOCK PRICE RETURNS
Karamjit Kaur
Buy Back of shares is a new phenomenon in India. Buy Back of shares means company repurchase their own shares. In simply words Buy Back means reissue of shares. The research paper focused on impact of Buy Back of shares on stock returns during the study period. The study based on two event window period i.e. 61 days (-30, +30), and 181 days (-90 to +90) during study period. The research paper has been examining the impact of Buy Back of Shares with the help of T Test and T Paired Sample Test. The study used Market Model for analyze the average abnormal and cumulative average abnormal return for the 61, and 181 days event window Period. The study also measured the post and pre performance of Buy Back of Shares during the study period. The study found that the Buy Back of Shares is treated as positive signal for investors, but negative for post and pre Buy Back. The result indicates that there is no significant difference between post and pre average abnormal return of Buy Back.
KEYWORDS: Companies, Stock Price, Average Abnormal Return, Performance
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Vol | : | 4 |
Issue | : | 7 |
Month | : | July |
Year | : | 2016 |