Indian Journal of Finance
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- IJF-Oct12-Article3-MOTIVATIONS OF SHARE BUYBACKS IN INDIA
- Price : 80.00
- Published on March 27, 2013
- Associated Management Consultants (P) Ltd.
- Issues 356
- Language - English
- Published daily
About this issue
Majority of the studies on share buybacks have been undertaken in the developed countries, especially the U.S. As the Indian capital market has unique features, it is desirable to examine the motivations of Indian share buybacks. A total of 119 events of share buybacks were analyzed over a period of 2003 - 2010. Public announcements provided by the companies were studied to identify the major reasons provided by the companies for undertaking share buybacks. The results reveal that the main motivations for announcing share buy backs in India are: Improving financial performance and returning of surplus cash. There is no shift in motivations across time and methods. Keywords: Buyback, Motivation, Signaling, Undervaluation
About Indian Journal of Finance
Indian Journal of Finance, a source of sophisticated analysis of developments in the rapidly expanding world of finance, is a monthly journal with topics ranging from corporate to personal finance, insurance to financial economics and derivatives.