IMPACT OF BUY BACK OF SHARES ON STOCK PRICE RETURNS
Keywords:
Buy Back of Shares, Average Abnormal Return, Cumulative Average ReturnAbstract
Buyback of shares by the Company leads to a reduction in the number of shares available to shareholders for further purchase. This reduction on supply part may lead to an appreciation in the stock prices in the market. The study measured the impact of buyback of shares has been using Standard Event Methodology. The research paper has been written to explore the impact buyback of shares on stock price. The short term stock price returns calculated for the event window period, i.e. 21 days 10 days before and after the announcement of buy back of shares.
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