The effectiveness of price-stabilizing share buybacks: Evidence from listed firms in Vietnam

Wang, Huabing Barbara; Nguyen, Cuong; Rafi, Nurul A.

doi:10.1016/j.najef.2021.101436

Cited by 2 publications

(3 citation statements)

References 46 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Share repurchase berpotensi mengurangi volatilitas imbal hasil dengan menahan pergerakan harga saham yang menurun (H. B. Wang et al, 2021). Hong et al (2008) mengajukan model analisis tentang stabilisasi harga saham perusahaan.…”

Section: Share Repurchaseunclassified

“…Hal tersebut didukung penelitian yang dilakukan oleh H. B. Wang et al (2021) yang menyatakan bahwa volatilitas berkurang selama periode transaksi aktual pembelian kembali saham. Berdasarkan pemaparan di atas, hipotesis pertama dari penelitian ini adalah: H1: Share repurchase berpengaruh negatif terhadap perubahan volatilitas saham.…”

Section: Share Repurchaseunclassified

“…Menurut H. B. Wang et al (2021), share repurchase merupakan salah satu cara yang dapat memberikan nilai bagi pasar yang kurang berkembang (less developed market) dimana tingkat volatilitasnya tinggi. Selain itu, Kim (2007) mengatakan bahwa terdapat efek price support dari eksekusi transaksi share repurchase.…”

unclassified

See 2 more Smart Citations

Pengaruh share repurchase dan likuiditas terhadap volatilitas saham

Sukmana

2023

J. Manaj. Bisnis dan Kewirausahaan

View full text Add to dashboard Cite

FSA oversees capital market regulations to maintain the stability of the Indonesian capital market, especially during unstable conditions, through a share repurchase policy. This study aims to analyze the relationship between share repurchase and liquidity on stock volatility. The research sample was selected using a purposive sampling technique, and 137 samples met the criteria. Data analysis was performed using multiple linear regression. The results of this study indicate that share repurchase has a significant negative effect on stock volatility, and liquidity has a significant positive effect on stock volatility. These findings indicate that share repurchasing can be considered for companies to reduce stock volatility in the short term, and they need to pay attention to stock liquidity conditions as a factor affecting stock price fluctuations. OJK mengatur regulasi pasar modal untuk menjaga stabilitas pasar modal Indonesia terutama pada saat kondisi berfluktuasi, salah satunya melalui kebijakan share repurchase. Penelitian ini bertujuan untuk menganalisis hubungan share repurchase dan likuiditas terhadap volatilitas saham. Sampel penelitian dipilih dengan teknik purposive sampling dan terdapat 137 sampel yang memenuhi kriteria. Analisis data menggunakan regresi linear berganda. Hasil penelitian ini menunjukkan bahwa share repurchase berpengaruh negatif secara signifikan terhadap volatilitas saham dan likuiditas berpengaruh positif secara signifikan terhadap volatilitas saham. Temuan ini mengindikasikan bahwa share repurchase dapat dijadikan pertimbangan bagi perusahaan untuk upaya meredam volatilitas saham dalam jangka pendek, serta perlu memperhatikan kondisi likuiditas saham sebagai faktor yang mempengaruhi fluktuasi harga saham.

show abstract

Section: Share Repurchaseunclassified

See 1 more Smart Citation

Pengaruh share repurchase dan likuiditas terhadap volatilitas saham

Sukmana

2023

J. Manaj. Bisnis dan Kewirausahaan

View full text Add to dashboard Cite

show abstract

Open repurchase announcements and abnormal returns of Indian firms: An industry-wise analysis

Bhama

2023

Investment Management and Financial Innovations

View full text Add to dashboard Cite

Although the tender offer buyback method has gained significance over time, many companies still prefer open market repurchases. The existing literature focuses mainly on the impact of buyback announcements, specifically on stock returns; however, buyback announcements and abnormal returns in the case of open market repurchases have not yet been studied in detail, especially across industries in the Indian context. This study, therefore, attempts to analyze the impact of open market repurchase announcements on the stock returns of Indian firms. To that end, the event study methodology has been used for a period of 31 days, i.e. 15 days prior to and 15 days after the buyback announcement on a filtered sample of 100 firms during the period 2010–2020. The results of the study indicate that the returns were more favorable in the short run. The findings do not support the undervaluation rationale of firms behind the open buyback statement. The low-profit opportunities in the prior event window convey investors’ predictions about the repurchase announcement. In the context of industries, the manufacturing sector seemed to be far better than IT &amp; telecom, chemical, and pharma firms as the returns were statistically significant for five (5) out of 31 days. The industry-specific results also suggest that the profit opportunities are majorly in the pre-announcement phase. The overall findings corroborate that share repurchases might be irrelevant to shareholders’ wealth. Therefore, open market buybacks may support decisions related to capital structure changes. AcknowledgmentThe infrastructural support provided by the FORE School of Management, New Delhi in completing this paper is gratefully acknowledged.

show abstract

The effectiveness of price-stabilizing share buybacks: Evidence from listed firms in Vietnam

Cited by 2 publications

References 46 publications

Pengaruh share repurchase dan likuiditas terhadap volatilitas saham

Pengaruh share repurchase dan likuiditas terhadap volatilitas saham

Open repurchase announcements and abnormal returns of Indian firms: An industry-wise analysis

Contact Info

Product

Resources

About