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Market underreaction to open market share repurchases on the JSE

dc.contributor.authorWesson, N.en_ZA
dc.contributor.authorMuller, C.en_ZA
dc.contributor.authorWard, M.en_ZA
dc.date.accessioned2018-09-26T06:27:46Z
dc.date.available2018-09-26T06:27:46Z
dc.date.issued2014
dc.identifier.citationWesson, N., Muller, C. & Ward, M. 2014. Market underreaction to open market share repurchases on the JSE. South African Journal of Business Management, 45(4):59-69, doi:10.4102/sajbm.v45i4.141.
dc.identifier.issn2078-5585 (print)
dc.identifier.issn2078-5976 (online)
dc.identifier.otherdoi:10.4102/sajbm.v45i4.141
dc.identifier.urihttp://hdl.handle.net/10019.1/104496
dc.descriptionCITATION: Wesson, N., Muller, C. & Ward, M. 2014. Market underreaction to open market share repurchases on the JSE. South African Journal of Business Management, 45(4):59-69, doi:10.4102/sajbm.v45i4.141.
dc.descriptionThe original publication is available at https://sajbm.org
dc.description.abstractThis study examined the long-term performance of open market share repurchase announcements made by companies listed on the JSE during their reporting periods including 1 July 1999 to 2009. A total of 195 open market share repurchase announcements were identified. A maximum outperformance of about 35% was found on day t+550 (about two years subsequent to the announcement). After splitting the sample into 'value' (low P/E ratio) and 'growth' shares (high P/E ratio), it was found that the outperformance was almost entirely confined to the value portfolio, reaching a maximum of about 80% by day t+630 (about two-and-a-halfyears subsequent to the announcement). This study applied a more robust research methodology than used in earlier South African research on this topic; it also used an improved dataset and extended the research period, compared to other research. The results of this study showed much higher positive abnormal returns than were found in earlier international and South African studies. Investors should take advantage of the informational value of open market repurchase announcements and the related significant abnormal returns to be earned.en_ZA
dc.description.urihttps://sajbm.org/index.php/sajbm/article/view/141
dc.format.extent11 pages
dc.language.isoen_ZAen_ZA
dc.publisherAOSIS
dc.subjectStock repurchasing -- South Africaen_ZA
dc.subjectJohannesburg Stock Exchangeen_ZA
dc.titleMarket underreaction to open market share repurchases on the JSEen_ZA
dc.typeArticleen_ZA
dc.description.versionPublisher's version
dc.rights.holderAuthors retain copyright


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