The value of share buybacks

A research proposal Submitted by MR ASHISHKUMAR R PRAJAPATI AIMA Registration No !"#$#!!%!

All India Management Association Centre for Management Education Management House, 14 Institutional Area, Lodi Road, New Del i!11" ""# $el% "11 !&4'4(1"", )a*% "11!&4'&''+,,E!mail%info!cme-aima!ind.org, /e0site% tt1%22www.aima!ind.org And De1artment of 3usiness Administration Aligar Muslim 4ni5ersit6 Aligar , India
/e0site http://www.amu.ac.in/

$a0le of Contents

CH NO .

CHAPTER NAME

PAGE NO .

1 1.1 1.2 1.3 1.4 1.# 1.% 1.( 1.) 2 3 4 # %

Introduction Share capital ways to make new shares issue Retain or Return excess cash? ypes o! "uy"ack o! shares $uy"ack explained &oti'ations !or "uy"ack $uy"acks in India so !ar *aw o! the land Sur'ey o! *iterature +",ecti'e o! the Study &ethodolo-y .ypothesis /nnotated "i"lio-raphy

C a1ter 1% Introduction
1.1 Share ca1ital
Share capital is that part o! In'ested money which is not repaid to the in'estors in the normal course o! "usiness. It represents the risk capital staked "y the owners throu-h purchase o! a company0s common stock or ordinary shares. he 'alue o! e1uity capital is computed "y estimatin- the current market 'alue o! e'erythin- owned "y the company !rom which the total o! all lia"ilities is su"tracted. +n the "alance sheet o! the company2 e1uity capital is listed as owners0 e1uity also called as share capital.

1.2 wa6s to ma7e new s ares issue

$o raise e8uit6 ca1ital )ollowing are t e wa6s cor1orate ado1t for fres issue% 13 23 33 43 #3 /n I4+ or 54+ with "ids in'ited !rom e'eryone 4ri'ate placement to promoters or to an institutional in'estor Issue o! de"t instrument con'erti"le into e1uity /n ac1uisition where the company issues !resh shares to ac1uired company. Issue o! stock option to employee

&ost success!ul companies e'entually !ind themsel'es -eneratin- more cash than they can reasona"ly rein'est in their "usinesses at attracti'e returns on capital.

1.3 Retain or Return e*cess cas 9

Some executi'es and "oard mem"ers ar-ue that returnin- cash to shareholders re!lects a !ailure o! mana-ement to !ind enou-h 'alue6creatin- in'estments. Share repurchases or di'idends send a ne-ati'e si-nal to the markets that a company can !ind nothin- "etter to do with its cash. $ut in most cases2 simple math lea'es such companies with little choice: i! they ha'e moderate -rowth and hi-h returns on capital2 it7s !unctionally impossi"le !or them to rein'est e'ery rupee they earn.

In'estors are -enerally relie'ed to learn that companies don0t intend to do somethin- waste!ul such as make an unwise ac1uisition or a poor capital expenditure with the excess cash. In'estors are pressurin- companies to distri"ute a mountain o! cash they7'e accumulated in the past. Share "uy"ack and di'idend distri"ution are two alternati'e !orms o! returninexcess cash to shareholders. $uy "ack o! securities means purchase o! securities "y a company !rom its own Shareholders. It is not purchase o! the securities "y promoters o! company2 "ut it is 4urchase o! its shares "y the company itsel! at a speci!ied price his calculation o! price o! shares is usually done at a premium on the market price so as to attract more num"er o! in'estors2 which may 'ary as per the !inancial prudence o! the company. hus "uy"ack is one o! the prominent modes o! capital restructurin/n explicit re-ulatory re1uirement in India is that the share "uy"ack has to "e !inanced !rom the reser'es or accumulated pro!its here are experts who "elie'e "uy"acks arrest !allin- stock price in a market correction2 and e'en lead to !aster reco'ery when the markets "ounce "ack

1.4 Types of buyback of shares

1.4.1 )i*ed 1rice tender offer o "uy"ack the shares company o!!ers !ixed price !or !ixed num"er o! shares this is called as tender o!!er method. /ll share holders recei'e an o!!er includin- price2 and shareholders can tender their shares accordin-ly. Success o! this method depends upon choosin- the appropriate o!!er. I! the o!!er is too low2 "uy "ack operation will !ail "ecause tendered shares will "e too low. I! the price is set too hi-h2 the tendered amount o! shares will "e more and company "uys "ack in proportion !rom each shareholder. 1.4.& :1en mar7et 0u60ac7

he company could decide to "uy shares directly !rom market instead o! tender "uy"ack o!!er. he !lexi"ility in open market "uy"ack is that company need not !ix a price 8 it can !ix a ceilin- price "elow which it will "uy its shares !rom open market. .owe'er many recent studies ha'e 1uestioned +pen &arket "uy"acks 9+&$3 as non serious2 !lexi"le and non committal method o! returnin- cash to shareholders. &any +&$7s remain incomplete and a'era-e time taken is also more as compared to tender o!!er method 1.( 3u60ac7 e*1lained Suppose company "uys "ack 1:: shares ; 1.# Rs per share !or total consideration o! Rs 1#:. 4ost "uy"ack companies R+/ has impro'ed !rom 4 < to #.(1 <2 while =4S has impro'ed !rom Rs :.:2 to Rs :.:22 Shares +utstandin/ssets cash and "ank 4ro!its/ earnin-s Return +n assets 9/ssets/4ro!its3 E=> 1.' Moti5ations for 0u60ac7 $uy"ack is the "est use o! capital at a particular time when companies don0t see any "etter in'estment opportunity. Since the -oal o! a mana-ement is to maximi?e return !or shareholders 1.'.1 )ree cas &ana-ers with !ree cash !low ha'e opportunities to increase the le'el o! di'idend or repurchase stocks instead o! in'estin- in low return in'estments 9@ensen2 1>)%3. 1.'.& Increasing earnings 1er s are 3efore 3u60ac7 After 3u60ac7s 1::: >:: #:: 3#: 2:: #: 2: 2: 4; (.<1 ; "."& "."&&

Aue to "uy"ack num"er o! shares are reduced2 the pro!its can "e di'ided o'er !ewer shares. he =4S increases and the increased earnin-s per share can make the stock attracti'e !or shareholders 9Ramsay2 2:::3. 1.'.# >ignal from management he mana-ement team knows more than the shareholder does. Bith the "uy"ack pro-ram the mana-ement communicates a si-nal to the shareholder that the stock is under'alued 9Crullon D &ichaely2 2::23. 1.'.4 Ca1ital structure he share "uy"ack in!luences the !inancial le'era-e. 5irms with added de"t capacity may repurchase shares in order to create a more desira"le capital structure. 1.'.( Anti!ta7eo5er mec anism o de!end the company a-ainst the threat o! a hostile takeo'er2 the mana-ers can decide to use a "uy"ack. / "uy"ack can "e undertaken with a 'iew to a de!ensi'e strate-y. Ae!ense "uy"ack o! shares has a ne-ati'e impact on the tar-et companies 9Ramsay2 2:::3. 1.'.' E>:=> 61ot eses o maximi?e the shareholders2 reward and incenti'es plans are linked to the stock price. Shareholders ali-n their interest with that o! the mana-ers and !ind it wise to use a stock option "ased incenti'e system. It is in their interest to repurchase stock "ecause it does not dilute the earnin-s. he stock is worth more a!ter the repurchase than a!ter the out!low o! cash "y a di'idend payout. Bhen executi'es hold stock options2 payin- out di'idend is less attracti'e and the option to repurchase shares is "ecomin- more attracti'e 9@olls2 1>>)3.

1.< 3u60ac7s in India so far

he di!!erent reasons ha'e "een assi-ned !or introducin- "uy"ack in Indian corporate scenario "y di!!erent authors in their studies. here was an increasin- pressure !rom Indian corporate sector to allow them to use "uy"ack !or capital reduction throu-h usa-e o! internal surplus cash o! the company. Buyback Announcements in In ian Ca!ita" Markets
5inancial Eear 1>>)61>>> 1>>>62::: 2:::62::1 2::162::2 2::262::3 2::362::4 2::462::# 2::#62::% 2::%62::( 2::(62::) 2::)62::> 2::>62:1: 2:1:62:11 2:1162:12 2:1262:13 2:1362:14
Source: "uy"ack data till 2:12 6 /shish /rora 92:123

Fum"er +! $uy"ack /nnouncements 1 12 1# 2> 3# 1( 13 11 ( 1: 4# 2# 13 1#

/mount +! Gonsideration 4aid 9In Rs. Grore3 1.3> 1#>.:( 341.% 4#1.%) 3>1.#> 44.#> 3(:.>% 2#>.14 (4.%4 2%%).41 22(#.4) 332.)1 3(1: 1#>).4%

S=FS=H 4er!ormance 63.> 33.) 62).> 6:.% 612.# )4.1 1%.: (3.4 1#.2 22.1 63).4 (>.> 1:.) 61:.% ).1

1.+ Law of t e land In India2 no company had the power to "uy its own shares2 underSection (( o! the Gompanies /ct2 1>#%2 unless it was "y way o! reduction o! sharecapital. he law also "arred a pu"lic company !rom extendin- any !inancial assistance !or the purchase o! its own shares. he crucial reason !or such a prohi"ition on "uy "ack o! security "y the company was the !eelin- that allowin- companies to "uy6"ack

their shares could -i'e rise to companies tra!!ickin- in their own shares leadin- to undesira"le practices like insider tradin- or other such unhealthy practices on stockprices. his em"ar-o has "een diluted "y the Gompanies 9/mendment3 /ct2 1>>> 9/ct 21 o! 1>>>3 "y the insertion o! Sections ((6/2 ((6// and ((6$2 which permits a company whether pu"lic or pri'ate2 a!ter !ollowin- the prescri"ed procedureto "uy6"ack its own securities with suita"le sa!e-uards speci!ied 1.+.1 3u6!0ac7 of >ecurities ?Amendment@ Regulations, &"1# Securities and =xchan-e $oard o! India 9$uy6"ack o! Securities3 9/mendment3 Re-ulations2 2:13.
he &inimum "uy"ack &aximum "uy "ack amount he maximum "uy"ack period Restriction on !urther issue Greation o! an escrow account Restriction on next "uy"ack 4rohi"ition on the promoters Increased !rom 2# < percent to #: < o! total "uy"ack amount. 5ailure to result in !or!eiture o! the escrow account up to a maximum o! 2.# < o! total "uy "ack amount. Ip to 1# < o! paid up capital and !ree reser'es Reduced !rom 12months to % months Restriction increased !rom % months to 12 months /t least 2# < o! total "uy"ack amount &inimum -ap o! one year !rom closure o! earlier "uy"ack 4romoter shall not execute any transaction 2 either on market or o!! market durin- the "uy"ack period

C a1ter &% >ur5e6 of Literature

Re'iew o! literatures is a process o! de'elopin- an insi-ht into conceptual as well as research "ased studies pre'ailin- on the pertinent area. /ny research work is ori-inated out o! some pre'ious research e!!orts and their !indin-s. he present research study is not an exception to this. Se'eral studies ha'e "een conducted !rom time to time especially in a"road re-ardin- share "uy6"ack. Some o! these studies related to the present context are presented "elow:

Aut or Article

.ert?el

he e!!ects o! stock repurchase on ri'al !irms

Researc 2 Aear Countr6 H61ot eses his paper in'esti-ates the stock price "eha'ior o! ri'al !irms in the same industry as !irms announcinstock repurchases 1>>1 tender o!!ers. In'esti-ate and understand why !irms repurchase stock and how moti'es 2::: IS/ interrelate. his paper in'esti-ates "uy"acks that are moti'ated "y under'aluation and their si-nal o! new share price in!ormation !irms and their 2::2 /ustralia counterparts. Bhether corporate executi'es7 stock repurchase decisions are a!!ected "y their incenti'e to mana-e 2::3 Isa diluted =4S

$est used

Conclusion

Gross6 sectional study

Bhy do !irms repurchase Aittmar stock? Ao share "uy"ack announcements con'ey !irm6 speci!ic or industry6wide in!ormation? / +tchere test o! the and under'aluation Ross hypothesis

o"it model

his study !inds no e'idence o! a"normal announcement period stock "eha'ior !or ri'al !irms. 5irms repurchase stock in'estment2 capital structure2 corporate control2 compensation policies. 5irms take ad'anta-e o! potential under'aluation2 distri"ute excess o! capital2 to alter their le'era-e ratio2 !end o!! takeo'ers2 and counter dilution e!!ects o! stock options.

he results o! the study o! the study show that2 on a'era-e2 shareholders o! !irms announcinshare "uy"ack that are moti'ated "y under'aluation earned statistically si-ni!icant a"normal returns o! 1.2#< on the announcin- day2 while those ri'al Ini'ariate !irms also earned si-ni!icant test2 a"normal returns o! :.3>< on day Gorrelation J2.

$ens2 Fa-ar2 Skinner and Bon-

=mployee stock options2 =4S dilution and stock repurchases

o"it model

hat the diluti'e e!!ect o! employee stock option plans on diluted =4S helps explain executi'es7 stock repurchase decisions.

Aut or

Article

Aear Countr6 Researc 2 H61ot eses

Ar /. K. &ishra

/n =mpirical analysis o! share "uy"acks in India

2::# India

Share 4rice $eha'ior around $uy6 /mita"h Cupta "acks in India

2::% India

Aixon2 4almer2 Stradin- D Boodhead

/n empirical sur'ey o! the moti'ation !or share repurchases in the IK

2::) IK

Conclusion he announcement o! In'esti-ate 'alidity o! lon-6 a "uy"ack did term e!!ect o! share "uy"ack "rin- an increase pro-ram on a companyLs share in share prices price and to assess which "ut this was a companies "ene!it more !rom short6term these pro-rams. /nalysis phenomenon. 13 "uy"ack has a positi'e impact on the =4S 23 !inancial restructurin13 estin- the in!ormation throu-h "uy"ack si-nalin- hypothesis which does not ha'e pro'ides that "y announcinany direct "uy6"ack o! shares2 the positi'e mana-ement o! a company in!luence on si-nals the underpricin- o! economic as well shares and !uture expectations as market 'alue to the market creation he results indicate that a primary moti'e o! share repurchase in the IK is to achie'e an optimal capital structure2 and that the his paper aims to !ocus on re1uirement to the moti'ations o! IK cancel shares is companies to repurchase !undamental to shares and compares similar "uy"ack research in the IS/. decisions.

$est used

Aut or

Article

Researc 2 Aear Countr6 H61ot eses

$est used

.ydera"ad2 R *

4rice 4er!ormance 5ollowinShare $uy"ack /nnouncements in India

2::) India

understand the determinants o! announcement returns o! Indian "uy"acks

E. /-arwal2 K. G. Iyer2 S. S. Eada'

Gapital Structure Aecision: / $eha'ioral Study on &ultiple o",ecti'es !ramework

2::> India

Kaur Karam,eet and Sin-h $alwinder

Impact o! Share $uy6$ack /nnouncements on Stock 4rices: ='idence !rom India

2:1: India

Gha'ali K D S. Shemeem

Impact +! $uy"acks +n Share 4rice 4er!ormance +! Gompanies In Indian Gontext

2:11 India

=xplorin- the role o! the decision maker in a multi6 o",ecti'e !ramework in India 13 market reaction to the share "uy6"ack announcements o! companies listed on $S= 23 In!ormation si-nalin- !ree cash !low and le'era-e hypotheses. Bhether si-nalinhypothesis holds true in the select sample o! companies in the Indian scenario.

Conclusion announcement o! share "uy "acks si-ni!icantly increases the prices o! shares around the time o! announcement and lar-e companies -enerate lower a"normal returns than small companies "ecause o! low in!ormation asymmetry "etween the mana-ement and in'estors o! lar-e companies 13 $uy"ack as a !inancial strate-y to ad,ust the de"t to e1uity ratio is unpopular amon- the respondents 23 &oti'ations !or $uy"acks decisions in descendinIncrease =4S2 Increase the market 'alue o! the share2 Itilise excess cash2 Increase the promoters stake2 Reduce sur'ey Gapital "ase2 4ermit delistinmethod o! !irm 13 ='ent study methodolo-y with Sensex as the market index and ha'e !ound that market reacts positi'ely to the "uy6"acks. 23 Results re'eal that only le'era-e and under6'aluation hypotheses were !ound 'alid whereas si-nalin- and !ree e'ent cash !low hypotheses were study re,ected. 13 here exists a positi'e market reaction with "uy"ack 23 In!ormation re-ardin- the corporate announcements o! "uy"acks is a"sor"ed 1uickly into the share prices and has a measura"le impact on the stock price per!ormance.

market model e'ent study

*ookin- throu-h the literature 2 it is !ound that most o! the studies in lay stress on si-nalin- hypothesis2 !ree cash !low2 optimal capital structure2 de!ensi'e tactics a-ainst hostile takeo'ers2 =S+4 !undin- and mana-erial wealth2 di'idend su"stitution and tax e!!ects !ollowed "y announcement o! "uy6"ack o! shares "y companies. In most studies researchers ha'e !ocused on stock per!ormance o! !ew months "e!ore and a!ter "uy "ack announcement. Study is re1uired to "e done on company and stocks per!ormance o'er period o! 1636# years as it may "e assumed that non tenderin- shareholders ha'e a lon-er term in'estment hori?on. /lso one o! area which needs a !urther study is Mper!ormance re'iew o! the "uy"acks M. /nd i! this tools was e!!ecti'ely used to achie'e the stated o",ecti'e.

C a1ter #% :0Becti5e of t e >tud6

he study will "e !ocused on !ew di!!erent yet inte-rated o",ecti'es to "e /chie'ed. hese o",ecti'es ha'e "een speci!ied "elow as: #.1 All is well s6ndrome Study needs to "e undertaken to understand i! "uy"ack o! shares "y companies were undertaken when companies and market "oth were doin- wellNand were reluctant to announce "uy"ack2 when prices were low relati'e to their intrinsic 'aluations. Is it that companies stopped "uy"acks when markets made lows? #.& 3u60ac7s as 1rice sta0iliCation tool o study e!!ecti'eness o! $uy"acks as price sta"ili?ation and si-nalin- tool in the years o! !inancial crisis and examine i! "uy "ack premium paid in tender o!!er "uy "ack is positi'ely correlated with ma-nitude o! under'aluation #.# $u60ac7 =remium

o study i! "uy"ack premium is a!!ected "y !actors such as tar-eted "uy"ack percenta-e D takeo'er threat. D $uy "acks ha'e "een used as mechanism to increase promoter7s stake usin- company7s !unds? #.4 Effecti5eness of a s are 0u60ac7 1rogram o study e!!ecti'eness o! a share "uy"ack pro-ram in terms o! what is the course o! per!ormance o! !irms that ha'e had a stock "uy"ack pro-ram? Bhat in the short run and in the end is the impact on the share price o! a !irm that has had a "uy"ack? Aoes it create 'alue !or the shareholders2 either in the end or in the short run? #.( 3u60ac7 1erformance re5iew of com1anies +'er con!idence can lead mana-ement to "uy "ack shares e'en at the peak share priceNand a "ias !or caution can restrain them !rom "uyin- shares when prices are lowest.

C a1ter 4% Met odolog6

4.1 $61e of researc he present study will mainly analy?e the relationship "etween le'els o! $uy"ack announced or undertaken and company and stocks 'arious !inancial 'aria"les. ype o! research !or this study can "e classi!ied as descripti'e research mainly usin- secondary data "ein- analy?ed 1uantitati'ely. $oth cross6sectional as well as lon-itudinal data will "e used !or the purpose o! achie'in- the stated o",ecti'es. 4.& Data >ource to 0e used for t e >tud6 he secondary data will lar-ely include daily share prices2 daily 'olume o!

ransactions2 !inancial ratios2 amount o! shares "ou-ht "ack or announced to "e "ou-ht "ack2 $S= daily S=FS=H 'alues and 'olume o! transactions +n $S=. his data will "e o"tained !rom 4.# >ource of data 13 /nnual reports o! the companies 23 S=$I2 $S=2 FS= 33 =conomic imes2 $usiness Standard2 43 &oneycontrol.com2 Kotaksecurities.com #3 Gapitaline data"ase 4.4 =o1ulation 2 4ni5erse ! >am1le >election i3 *ist o! the companies that made "uy"ack announcements !rom 1>>) and are listed on $S= D FS=. ii3 /'aila"ility o! dates o! "uy6"ack announcement !rom 1>>) onwards iii3 Aata a'aila"ility o! closin- stock prices and closin- index 'alues o! the sample companies

4.( Anal6sis tec ni8ues /ppropriate techni1ues !or data analysis will "e selected2 keepin- in mind the research o",ecti'es2 nature o! the data and the underlyin- properties o! the statistical techni1ues. 4.(.1 t! $est for Means of >ingle >am1le test analysis is "ased on t 8 distri"ution and is considered an appropriate test !or ,ud-in- the si-ni!icance o! a sample mean or !or ,ud-in- the si-ni!icance o! di!!erence "etween the means o! two samples in case o! small sample9s3 when population 'ariance is not known. 4.(.& t!$est for =aired >am1les

Is used to measure the chan-es in means o! the 'arious !inancial 'aria"les and !inancial ratios "e!ore and a!ter the "uy"ack announcements. 4.(.# $ e C i!s8uare test ests the association "etween two 'aria"les and is used to analy?e cross ta"les. 4.(.4 Multi1le Regression Anal6sis &ultiple re-ression analysis is used to explore the relationships amon- the 'aria"les.

C a1ter ( H61ot esis

.ypothesis testin- determines the 'alidity o! the assumptions 9descri"ed as null hypothesis3 with a 'iew to choose "etween two con!lictin- hypothesis a"out the 'alue o! a population parameter .hypothesis testin- helps to decide on the "asis o! sample data2 whether a hypothesis a"out the population is likely to "e true or !alse o !ind an answer to the o",ecti'e o! research 1uestions di!!erent hypotheses ha'e "een !ormulated. $ased on these hypotheses the study has to in'esti-ate i! e'idence exists in the research statement. H61ot esis 1 M&ana-ement announces "uy"ack o! stocks when their assessment o! the company7s economic 'alue exceeds the market 'alue M H61ot esis & M$uy "ack premium is positi'ely correlated with the ma-nitude o! under'aluationO H61ot esis # MAoes "uy"ack create 'alue !or the shareholders2 either in the short run or in lonrun?O

C a1ter ' Annotated 0i0liogra1 6

/rora2 /shish and 4asricha2 @asmeet Sin-h2 M&oti'ations !or $uy"ack amonIndian GompaniesO 9/pril 232 2:133. HI Gapital &arkets Gon!erence2 21622 Aecem"er 2:122 Indian Institute of Capital Markets 9I IIG&3 . /'aila"le at SSRF: http://ssrn.com/a"stractP22##3)# $ens2 Aaniel /.2 Fa-ar Qenky2 Aou-las2 Skinner @. and Bon- &. ..2 92::332 M=mployee Stock +ptions2 =4S Ailution and Stock RepurchasesO2 Journal of Accounting & Economics, Qol. 3%916332 2::32 #16>:. Gha'ali K D S. Shemeem 92:113 2O Impact +! $uy"acks +n Share 4rice 4er!ormance +! Gompanies In Indian Gontext M2 European Journal of Finance and Banking Research Qol. 4. Fo.4.2:11 Ae"das R2 Ghatter,ee G.292:133O Ao Share $uy"ack Greate Qalue 5or he Gompany ? /n =mpirical In'esti-ation +! Selected India Gompanies M2 Vid asagar !ni"ersit Journal of Commerce Qol. 1(2 &arch2 2:12/ISSF :>(36 #>1( 44 4>6%) AR. $ha"atosh $aner,ee and anupa Ghakra"orthy2O /ccountin- and Reportin!or $uy"ack in India M2 #he Chartered Accountant2 &ay 2::42 44 11):611)) Aua Qi"ha24uri .imanshu2&ittal R.K.292:1:32O Impact o! "uy6"ack o! shares on stock prices in India: an empirical testin- o! stock market e!!iciency in its semi6

stron- !ormO2 4ran,ana: #he Journal of Management A$areness2 Qolume : 132 Issue : 1244.#>6(1. =lton2 =dwin and Cru"er2 &artin2 M he =!!ect o! Share Repurchase on the Qalue o! the 5irmO2 #he Journal of Finance2 Qol. 239132 1>%)2 44.13#614>. .ydera"ad2R.*292::>3 2 M4rice 4er!ormance 5ollowin- Share $uy"ack /nnouncements in IndiaO2 Vision%#he Journal of Business &erspecti"e 2 Qol. 132 Fo. 12 pp. #>6(). Kaur Karam,eet and Sin-h $alwinder 92:1:32 MImpact o! Share $uy6$ack /nnouncements on Stock 4rices: ='idence !rom IndiaO2 Ad"ances in Management2 2:1:2 Qol. 32 issue (.

&. Ramachandran. 4.S.San,u. 4.S.Firmala2O =x 6 Ai'idend Aay Stock 4rice $eha'ior: ='idence !rom IndiaO2 &ra'handan % A (cholarl &eer Re"ie$ed Journal2 @une62:112 Qol.12 Issue22 pp.3#642. &ishra /.K.292::#3 Man empirical analysis o! shares "uy"ack in India2O #he ICFAI Journal of applied finance2 9may 8@une2 2::#3211.#2pp.#624 +tchere2 Isaac K. and Ross2 &atthew2 MAo Share $uy $ack /nnouncements Gon'ey 5irm Speci!ic or Industry6wide In!ormation? / est o! the Inder'aluation .ypothesis. International Re'iew o! 5inancial /nalysisO2 A"aila'le at ((R): http://ssrn.com/a"stractP2):(2) Ra'al2 4alak2 Ao $uy"ack o! Shares Increase Shareholder Qalue? 9Aecem"er 1:2 2:123. A"aila'le at ((R): http://ssrn.com/a"stractP21)(2)# Richard Ao""s and Berner Rehm2 MAe"atin- point: /re share "uy"acks a -ood thin-?O2Financial #imes2 2) @une 2::% Stepehens2 G.4.weis"ach &.S.291>>)32 M /ctual share reac1uisitions in open market repurchase pro-rammes2O Journal of finance 2#3.1pp. 3136 333. Sin-hal2 R.K. and R.K. &ittal2 1>>32 MAeterminants o! Gapital Structure: / Sur'eyO2 Finance India2 Qol. (2 Aecem"er 1>>32 pp ))36))>

S.Farayan Rao 92:1:32 M/nnouncement =!!ect o! +pen &arket Share $uy"acks in India: 4art61O2 Research (eminar presented at # A &ai Institute of Manipal62:1:. Sinha2 Sidharth2 MShare Repurchase as a akeo'er Ae!enseO2 Journal of Financial and *uantitati"e Anal sis2 Qol.2% 9232 1>>12 2336244. heo Qermaelen2 RGommon stock repurchases and market si-nalin-: /n empirical study2R Journal of Financial Economics2 1>)12 Qolume >2 Fum"er 22 pp. 13) 6)3. hirumal'ala'an2 4. and Sunitha2 K.2 MShare 4rice $eha'iour /round $uy $ack and Ai'idend /nnouncements in IndiaO2 Indian Institute of Capital Markets +th Capital Markets Conference &aper, A"aila'le at ((R): http://ssrn.com/a"stractP)(3>)%

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