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Information Content of Share Repurchase Program:A Study of Select Indian Firms
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Corporates use share repurchases as a part of overall corporate restructuring strategy of distributing excess funds and building promoters’ stakeholding. It provides a mechanism to adjust the capital structure and financial position of a firm. Repurchase of shares by Indian firms is on the rise in recent years. This paper is an attempt to examine the impact of repurchase announcements made by Information Technology (IT) companies on the wealth of the shareholders. All the recent repurchase announcements made by IT companies fall in the scope of this study. Results of event study methodology have found that there is a positive significant impact of repurchase announcements on the shareholders’ wealth.
Keywords
Share Repurchase, Buyback of Shares, Event Study, Stock Price Performance.
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