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Asian Journal of Research in Business Economics and Management
Year : 2018, Volume : 8, Issue : 4
First page : ( 60) Last page : ( 67)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2018.00037.3

Share Buyback Announcement Effect on Stock Returns-Evidence from India

Karthick G*, Dr. Suresha B**

*Student, Master of Business Administration, Department of Management Studies, Christ (Deemed to be University), Bengaluru, India. karthickgmadurai@gmail.com

**Associate Professor, Department of Management Studies, Christ (Deemed to be University), Bengaluru, India

Online published on 11 April, 2018.

Abstract

The announcement of each Corporate action has its own impact on the stock price. Buyback is one of the corporate action, which is gaining momentum in the Indian Market. Buyback of Shares is the process by which the companies purchase its own shares from the existing shareholders. It is like a company investing on its own. Foreign markets are tested enough on the impact of Buyback event, while Indian markets are less researched in this area. This article consists of a research study which gives a clear idea on the impact of buyback in Indian Markets with evidence from the buyback events occurred between the period of January, 2013 to December, 2017. The buyback announcement definitely makes an impact to the shareholder's wealth and this article gives an idea of how it is impacted in the short run.

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Keywords

Buyback, Stock Returns, Stock Market, Average Abnormal Returns (AAR), and Cumulative Average Abnormal Returns (CAAR).

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