Trend of Short-term Returns Generated through Share Buyback Offers in India-Reference-Cited by-同舟云学术

Trend of Short-term Returns Generated through Share Buyback Offers in India

Published:2022 Issue:2 Volume:9 Page:15-38
ISSN:2347-4467
Container-title:MUDRA: Journal of Finance and Accounting
language:
Short-container-title:MJFA

Author:

Bala Madhu

Abstract

The present paper intends to examine the trend of short-term returns generated by buyback offers in India; and other related aspects to such offers like investors’ response, and the method of repurchase used. A sample of 589 companies has been selected for the study. These are the “Indian companies across sectors which have initiated buyback offers, and are listed at Bombay Stock Exchange, and/or National Stock Exchange” from 1999-00 to 2020-21. The secondary data has been derived from the PRIME database for a time period of 22 years. Descriptive Statistics, Moving Average, and Bi-variate Regression analysis has been employed for investigation. The analysis has revealed an irregular trend of short-term returns which have been created through buyback events. The corporate sector is seen to be moving from the Stock Exchange Method of buyback to the Tender Method, along with encouraging shareholders’ response rate to buyback offers.

Publisher

Journal Press India

Subject

General Medicine

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