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The effect of share repurchase announcements on share price for Dutch firms

Karstens, H.A.C. (2021) The effect of share repurchase announcements on share price for Dutch firms.

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Abstract:This study examines the short-term effect of share repurchase announcements on stock prices of Dutch firms through event study methodology and regression analyses. The sample contains 77 share repurchase announcement in the period from 2015 to 2019. A significant cumulative average abnormal return of 1.33% is found for the event window [-1;+1] around the announcement date. Subsequently is tested whether Firm size, Market-to-book ratio, and leverage ratio are related to the stock price return. The cumulative abnormal return (CAR) was not successfully explained by the constructed model, possibly due to omitting variables. Future research could advance the study when incorporating more accurate variables to explain the CAR from share repurchase announcements.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/87448
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