DOI: 10.5176/2251-1997_AF14.66
Authors: Sohail Ahmed
Abstract:
Since limited studies have been done on share buybacks in Bursa Malaysia, this study intends to provide additional inside information on this practice. This study was undertaken because of eagerness to know more about the true financial and economic significance of share buyback. The objectives of this study were:To investigate the effects of share buybacks on share prices and the related risks in the short run before, at and after share buybacks. Financial theorists subscribe to a number hypothesis and theories to explain the motivations for share buyback program. Investigating the determinant and relationship of the share buyback volume with other financial variables from the financial reports and the financial characteristics of firms reveals the motivation for undertaking the share buyback program. The study investigates which testable hypothesis, out of all mentioned in the literature review, significantly contributes to share repurchases within the Malaysian context. The two objectives are generalization out of all the data collected. In generalization, individual effects on firms are ignored or averaged out. Therefore, using event studies and Multivariate Regression Analysis output produced from the regression analysis, this study intends to forecast future share prices.
Keywords: Regression Analysis, share price, Dividend
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