An Empirical Investigation Into Motivations For And Determinants Of Share Repurchases Activity The Case Of Saudi Arabia

Alghamdi, Salim

doi:10.34120/0430-025-001-003

Cited by 3 publications

(9 citation statements)

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“…Accordingly, the researcher believes that accounting conservatism could affect treasury stocks based on findings in the literature regarding the possibility that the higher the level of accounting conservatism, the lower the treasury stocks. This justifies the researcher's intention to adopt a trend for this relationship in line with previous studies in this With regard to analysing the impact of firms' operating characteristics on the relationship between accounting conservatism and treasury stocks, several studies (e.g., Andriosopoulos & Hoque, 2013;Abraham et al, 2018;Alghamdi, 2018;Bayar et al, 2021) indicate that treasury stocks differed among companies with different firm operating characteristics, including firm size, leverage ratio, and return on assets.…”

Section: Accounting Conservatism and Treasury Stockssupporting

confidence: 54%

“…Does this negative effect differ according to firm size, leverage ratio, and return on assets as moderating variables? Finally, previous studies (e.g., Andriosopoulos & Hoque, 2013;Abraham et al, 2018;Alghamdi, 2018;Bayar et al, 2021), and the experiences of some countries, confirm that accounting conservatism has a negative impact on a company's decision to repurchase its shares, and that this effect varies with the different operational characteristics of the companies, which act as moderating variables. Is there practical evidence for this relationship in firms listed on the Saudi Stock Exchange and, if so, what are the professional implications for the various stakeholders?…”

Section: Introductionmentioning

confidence: 52%

“…Several studies (e.g., Andriosopoulos & Hoque, 2013;Abraham et al, 2018;Alghamdi, 2018;Bayar et al, 2021) indicate that a company's decision to buy back its shares differs between companies according to their various operational characteristics, including firm size, leverage ratio, and return on assets. Some studies (e.g., Sun & Liu, 2011;Elhabashy, 2019;Haider et al, 2021) show a difference in the level of accounting conservatism between companies according to their operational characteristics, which also include firm size, leverage ratio, and return on assets.…”

Section: Introductionmentioning

confidence: 99%

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The Moderating Effect of Firm Characteristics on the Relationship between Accounting Conservatism and Treasury Stocks: Evidence from Firms Listed on the Saudi Stock Exchange

السلطان¹

2022

مجلة البحوث المحاسبیة

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This research aims to investigate the relationship between accounting conservatism and treasury stocks. The current research examines the potential influence of firm-specific characteristics as moderating variables on this relationship. Ordinary least squares regression and multiple regressions are used to test the research hypotheses. The study sample consists of 13 non-financial firms listed on the Saudi Stock Exchange during 2018-2020, resulting in a final sample of 39 firm-year observations. The researcher concludes that accounting conservatism has a significant and negative effect on treasury stocks. In addition, the negative effect of accounting conservatism on treasury stocks is strengthened in the presence of firm size, leverage ratio and return on assets as moderating variables. These findings are robust, as the results of the sensitivity analysis support those of the fundamental analysis. To the best of the researcher's knowledge, there is relatively limited evidence, in previous studies relating to accounting conservatism and its association with treasury stocks in the presence of firm characteristics as moderating variables. Furthermore, the findings of this research have implications for researchers and regulatory bodies that seek to enhance the quality of financial statements in emerging economies.

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Section: Accounting Conservatism and Treasury Stockssupporting

confidence: 54%

Section: Introductionmentioning

confidence: 52%

Section: Introductionmentioning

confidence: 99%

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The Moderating Effect of Firm Characteristics on the Relationship between Accounting Conservatism and Treasury Stocks: Evidence from Firms Listed on the Saudi Stock Exchange

السلطان¹

2022

مجلة البحوث المحاسبیة

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“…‫اات‬ ‫اس‬ ‫الدر‬ ‫اث‬ ‫م‬ ‫اد‬ ‫الند‬ ‫ااوة‬ ‫ت‬ e.g., Givoly & Hayn, 2000;Caskey and Laux,2017;Alkhafaji et al, 2020;Lobo et al, 2020;Shin & Hong, 2020 ‫أو‬ ‫د‬ ‫ول‬ (e.g., Perales, 2004;Dixon et al, 2008;Griffin & Zhu, 2010;Alghamdi, 2018;Kurt, 2018;Li et al, 2019;Lobo et al, 2020…”

Section: ‫المحاسبي‬ ‫التحفظ‬ ‫مفهوم‬unclassified

“…‫اات‬ ‫اس‬ ‫الدر‬ ‫اث‬ ‫م‬ ‫اد‬ ‫الند‬ ‫ااوة‬ ‫ت‬ (e.g., Choi et al, 2009;Benhamouda & Watson, 2010;Capizzi & Giovannini, 2011;Lee & Suh, 2011;Andriosopoulos & Hoque, 2013;Brailsford et al, 2016;Abraham et al, 2018;Alghamdi, 2018…”

Section: -2 -2 ‫تناولت‬ ‫التي‬ ‫اسات‬ ‫الدر‬ ‫ينة‬ ‫الخ‬ ‫أسهم‬ ‫محددات‬mentioning

confidence: 99%

أثر التحفظ المحاسبی على قرار الشرکة بإعادة شراء أسهمها: دراسة تطبیقیة على الشرکات المدرجة فی سوق الأوراق المالیة المصری

العلا¹,

فؤاد²

2020

مجلة الاسکندریة للبحوث المحاسبیة

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The purpose of this paper is to examine the effect of accounting conservatism on share repurchases for firms listed on the Egyptian stock exchange. The research hypothesis was derived, which is represented in: There is a negative relationship between the accounting conservatism and share repurchases. Multiple regression and logistic regression were used to test the research hypothesis. The sample used in the current study consists of 24 firms listed on the Egyptian stock exchange for the period from 2000 through 2019. To the best of the researcher knowledge, there are no Egyptian studies to date that examined the effect of accounting conservatism on share repurchases. Consequently, this paper contributes to the limited literature by suggesting a new model for the effect of of accounting conservatism on share repurchases. The researcher concludes that the new model is useful in explaining the effect of accounting conservatism on share repurchases. The study finds that (a) accounting conservatism has a significant negative effect on share repurchases, (b) Free cash flow has a significant positive effect on share repurchases, (c) Firm size has a significant positive effect on share repurchases, (d) Firm leverage ratio has a significant negative effect on share repurchases.

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Determinants of Cash Distribution Options in South African Listed Firms: An Empirical Analysis of Earnings, Company Size, and Economic Value Added

Munzhelele,

Obadire

2023

Risks

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The purpose of this study was to examine the determinants of cash distribution options by critically considering the effects of earnings, dividends, firm size, and economic value added. The distribution of cash dividends to shareholders serves as a basic means by which shareholders receive returns on their investments, so it is essential to examine share repurchases alongside dividends to enhance management’s efforts in maximising shareholder value. This study utilised panel data from 52 companies listed on the Johannesburg Security Exchange (JSE) that engaged in open market share repurchases for at least 2 years between 2000 and 2019. The data were extracted from the IRESS database. The panel data regression model was fitted with the ordinary least squares (OLS), difference generalised moment method (Diff-GMM), system generalised moment method (Sys-GMM), and least-squares dummy variable correction estimator (LSDVC). The findings revealed that there was a positive and significant relationship between the earnings per share and the payoff flexibility, implying that there was an inherent flexibility of repurchases as a payout option in the sampled firms. Additionally, the study revealed a significant negative relationship between the firm size, economic value added, and payoff flexibility. This suggests that larger companies tend to distribute a lower proportion of their earnings as share repurchases and opt for higher cash dividends instead. The implications of these findings provide financial managers with valuable insights into the role of share repurchases as a cash distribution choice. By recognising share repurchases as a viable option, financial managers can enhance their efforts to create and maximise shareholder value, particularly in emerging market settings. This evidence should encourage financial managers to recognise share repurchases more as a distribution choice, diffusing the tension regarding share repurchases replacing the payment of cash dividends and some doubt that they may not possess attributes complimentary to cash dividends. The study recommended relevant academic, industry, and policy implications in the South African context.

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An Empirical Investigation Into Motivations For And Determinants Of Share Repurchases Activity The Case Of Saudi Arabia

Cited by 3 publications

References 0 publications

The Moderating Effect of Firm Characteristics on the Relationship between Accounting Conservatism and Treasury Stocks: Evidence from Firms Listed on the Saudi Stock Exchange

The Moderating Effect of Firm Characteristics on the Relationship between Accounting Conservatism and Treasury Stocks: Evidence from Firms Listed on the Saudi Stock Exchange

أثر التحفظ المحاسبی على قرار الشرکة بإعادة شراء أسهمها: دراسة تطبیقیة على الشرکات المدرجة فی سوق الأوراق المالیة المصری

Determinants of Cash Distribution Options in South African Listed Firms: An Empirical Analysis of Earnings, Company Size, and Economic Value Added

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