Dittmar, , Why Do Firms Repurchase Stock?” Journal of Business 3, . Fama, and French.

The share buyback regulation was enacted by the Government of India (GOI) in 1998 with an objective to revive the fast declining Indian capital markets and protect the interest of the investors and companies from hostile takeover bids [1] . Until 2004, the buyback process did not gain any momentum, but the year 2004 witnessed a series of share buyback announcements and this process has continued until the present day. There is much discussion in media and financial circles about this issue, but little effort was made to know the reasons behind such buyback decisions. The present study has analyzed the corporate actions such as the \"free cash\" policy, dividend distribution, change in capital structure and lower profitability while deciding interpreting the intent behind these ‘tender offer buyback' and ‘open market buyback' offers between January 2004 to December 2017.The study uses a sample of ninety open market repurchasing companies with a similar number of non-repurchasing companies and of fifty-four tender buyback companies with fifty-four non-repurchasing companies in the same industry having similar market capitalization and listed on Bombay stock exchange (BSE). To investigate the drivers of open market buyback and tender offer buyback in India, a Tobit regression analysis has been used. The study concludes that ‘Tender offer buyback' is used more predominantly for capital structure corrections, while in the case of open market repurchase in India, dividend substitution and capital structure correction act as the key drivers. Whether ‘size of the firms' make any significant difference or not, study revealed positive impact on the motive for buybacks. A hostile takeover is a corporate phenomenon that entails the acquisition of a certain block of equity shares of a company giving the acquirer a larger stake in the company than its promoters. That enables the acquiring company to exercise control over the affairs of the company.

/pdf/corporate-restructuring-through-share-buybacks-an-indian-1c09rmqdlp.pdf

Corporate Restructuring through Share buybacks: An Indian Experience

Penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi share repurchase decisions pada perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) periode 2010-2017. Variabel independen dalam penelitian ini adalah akuisisi, depresiasi, dividen, laba sebelum beban bunga dan pajak, laba ditahan, pendapatan, penelitian dan pengembangan, arus kas, dan beta. Variabel kontrol penelitian ini adalah hutang janga panjang terhadap aset, hutang terhadap aset, dan kepemilikan institusional. Sedangkan variabel dependen adalah keputusan pembelian kembali saham. Dengan menggunakan model purposive sampling terdapat 18 (dari 555) perusahaan yang menjadi sampel dalam penelitian. Model analisis data yang digunakan adalah analisis regresi panel. Hasil penelitian ini menunjukkan bahwa akuisisi, depresiasi, dividen, laba ditahan, hutang jangka panjang terhadap aset, dan hutang terhadap aset tidak terdapat pengaruh signifikan terhadap pembelian kembali saham. Sedangkan laba sebelum beban bunga dan pajak, pendapatan, penelitian dan pengembangan berpengaruh negatif signifikan terhadap pembelian kembali saham dan arus kas, beta, dan kepemilikan institusional berpengaruh positif signifikan terhadap share repurchase decisions. Penurunan pada laba sebelum beban bunga dan pajak,pendapatan, penelitian dan pengembangan akan mendorong perusahaan untuk melakukan pembelian kembali saham. Untuk meningkatkan pembelian kembali saham, sebaiknya perusahaan meningkatkan arus kas yang dimiliki dan harus memperhatikan peningkatan pada risiko pasar yang juga dapat meningkatkan pembelian kembali saham.

https://www.trijurnal.lemlit.trisakti.ac.id/mrbm/article/download/5363/4277

Faktor-faktor yang mempengaruhi share repurchase decisions pada perusahaan yang terdaftar di Bursa Efek Indonesia

Corporates express their intention to reward shareholders during repurchase announcements by maximizing their wealth. However, most empirical research finds that stocks’ performance is poor when repurchase announcements are made, and there are no significant abnormal returns. In the Indian context, the present study examines firms’ real intention behind repurchase decisions. The sample comprises 132 firms listed on the Bombay Stock Exchange (BSE) from 2012 to 2018. A Tobit regression model has been used on different firm set-up. The empirical results reveal that low stock valuation is the prominent reason for buybacks among corporates. Firms prefer repurchases to provide abnormal returns to the investors; however, the Indian market does not react much positively to the repurchases, and this might be the reason for less encouraging buybacks in the Indian market. Further, the tender offer is the most preferred mode to open market repurchases. In the case of service firms, undervaluation, low earnings, and low debt ratios are the contributing factors impacting repurchases. Firms with low dividend intend to have more buybacks to reduce their tax burden.
Acknowledgment The infrastructural support provided by FORE School of Management, New Delhi in completing this paper is gratefully acknowledged.

/pdf/understanding-equity-repurchase-motives-for-different-firm-4drotzm2li.pdf

Understanding equity repurchase motives for different firm set-up: Indian evidence

Open market share repurchases in New Zealand

Almost 90% of the 54 public announcements for tender offer buyback between 2004 to 2013 suggested that their primary need for buyback is to increase the overall shareholder value for long term shareholders. The other important drivers are capital structure correction, improvement of earnings per share through buyback, effective utilization of surplus cash, and improvement in return ratios like return on net worth and return on asset. The study tried to investigate using a sample of 54 companies the significant drives using discriminant analysis for tender offer repurchase in India. Capital structure correction is the most significant driver for tender offer buybacks in the study. The paper also deployed the event study mechanism to see if there was any change in the share price on the day of the buyback announcement. The abnormal return calculated using market model indicated a positive reaction of the market on the day next to buyback announcement and reemphasised that companies are able to create value for their shareholders through tender offer share buyback.

A Study of Tender Offer Buyback and its Share Price Performance in India

Share buybacks are a 15 year old process in India. In developed countries share buyback is a well-accepted practice but in India the concept has yet to gain popularity. The article tries to look at the tender offer repurchases in Indian between the periods 2004 to September 2013. There were 51 public announcements for share buyback through tender offer route. The other popular method is open market repurchase. The paper tries to identify the main drivers in the tender offer repurchase through regression analysis. The more significant drivers are reduction of earnings per share through buyback, correction in capital structure and improvement in return ratios like return on net worth . The paper also looks at identifying the impact on promoter’s holding through tender offer buyback and identify if it is one of the drivers of share buyback.

/pdf/a-study-of-motivators-of-tender-offer-repurchases-in-the-35ppwtgez3.pdf

A Study of Motivators of Tender Offer Repurchases in the Indian Environment

The paper aims to identify the variables contributing to special payouts considering open market repurchase, tender offer repurchases, and special dividends. A multinomial logit model has been used...

https://www.tandfonline.com/doi/pdf/10.1080/23322039.2021.1934975

Determinants of payout choice between open market repurchase, tender offer repurchase and special dividends

Handle everyday research tasks with reliable, citation-backed results

Your personal Research Agent to handle research tasks with citation-backed results

Popular Tasks used by Researchers

How can I help with your research?

Meet SciSpace

Get more enhanced response by uploading the PDFs you want me to reference.

No relevant PDFs in your library

SciSpace is the AI research assistant for academics. Run systematic literature reviews on 280M+ papers, and write papers with cited sources. Trusted by 1M+ students, PhDs & researchers.

SciSpace | AI for Research

Analyze PDFs

Code & Manuscripts

Funding & Grants

Literature & Patents

Medical & Clinical Data

Systematic Review

Visualize & Present

Web & Data

Build a Google Scholar-like website for your research.

Build a website

Create charts and images for your research

Create a Chart

Write a paper for submission to a journal

Draft a manuscript

Patent Search

Design eye-catching scientific posters in minutes.

Scientific Poster Generation

Systematic Literature Review

One task is running at the moment. Your messages will be shown right after.

Drag and drop or click here to browse

Loved by <highlight>1 million+</highlight> researchers

Extract a list of specific topics and their sources from unstructured text

Topics

Compare and analyze relevant papers that matches with your search

Papers

Get insights from PDFs and bookmarked papers from your library

My library

Recent searches

Try searching for:

Catch AI-generated content in scholarly and non-scholarly content

{ai} Detector

Ai Writer

Get PDF Summaries, highlighted text explanations 

Chat with PDF

Effortlessly create in-text citations and bibliographies in APA and 2,500 other formats

Citation generator

Get explanations, summaries, and answers on academic papers

Ease up your research workflow with {scispace}'s cohort of exciting AI tools

Elevate your academic writing skills and convey your ideas the way you want

Paraphraser

Explore our range of reading and writing tools

Your file is being prepared and should be ready in a few minutes. If it's a large file, it might take a bit longer. You can close this window, and we'll email you the file when it's done.

You have reached a maximum limit of <strong>{limit}</strong> columns in the table. Remove at least <strong>1</strong> column to add or create another one.

Urvashi Varma

Author Tools

Chat about Author

Papers

Corporate Restructuring through Share buybacks: An Indian Experience

A Study of Tender Offer Buyback and its Share Price Performance in India

A Study of Motivators of Tender Offer Repurchases in the Indian Environment

Determinants of payout choice between open market repurchase, tender offer repurchase and special dividends