Market reaction to tender and private offers on the JSE

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dc.contributor.authorWesson, N.en_ZA
dc.contributor.authorMuller, C.en_ZA
dc.contributor.authorWard, M.en_ZA
dc.date.accessioned2019-03-06T09:18:28Z
dc.date.available2019-03-06T09:18:28Z
dc.date.issued2017
dc.descriptionCITATION: Wesson, N., Muller, C. & Ward, M. 2017. Market reaction to tender and private offers on the JSE. South African Journal of Business Management, 48(4):1-11, doi:10.4102/sajbm.v48i4.38.
dc.descriptionThe original publication is available at https://sajbm.org
dc.description.abstractInvestors can benefit when incorporating the information-signalling effect of share repurchases in their investment strategies. Previous South African studies on open market share repurchases confirmed the globally observed signalling-effect, but found open market share repurchases not to be the outright favoured share repurchase type in this country – as is the case globally. The present study is the first to examine the market reaction to the preferred share repurchase type, namely specific (or tender and private offers) share repurchases, in the South African regulatory environment. Abnormal returns were calculated using a 12-parameter benchmark over a four-year event window, for share repurchases announced from 1999 to 2009. Pro rata tender offers were found not to possess information-signalling benefits, but significant excess returns subsequent to the announcement date were reported for the two private offer types (namely other specific offers and the repurchase by the holding company of shares held by subsidiaries). The other specific offers were found to possess significant information-signalling benefits – especially over the long term and in respect of value companies.en_ZA
dc.description.urihttps://sajbm.org/index.php/sajbm/article/view/38
dc.description.versionPublisher's version
dc.format.extent11 pages ; illustrations
dc.identifier.citationWesson, N., Muller, C. & Ward, M. 2017. Market reaction to tender and private offers on the JSE. South African Journal of Business Management, 48(4):1-11, doi:10.4102/sajbm.v48i4.38
dc.identifier.issn2078-5976 (online)
dc.identifier.issn2078-5585 (print)
dc.identifier.otherdoi:10.4102/sajbm.v48i4.38
dc.identifier.urihttp://hdl.handle.net/10019.1/105516
dc.language.isoen_ZAen_ZA
dc.publisherAOSIS
dc.rights.holderAuthors retain copyright
dc.subjectTender offers (Securities) -- South Africa -- Market reactionen_ZA
dc.subjectPrivately placed securities -- South Africa -- Market reactionen_ZA
dc.subjectJohannesburg Stock Exchange -- South Africaen_ZA
dc.subjectStock repurchasing -- South Africaen_ZA
dc.subjectInvestments -- Strategic planning -- South Africaen_ZA
dc.titleMarket reaction to tender and private offers on the JSEen_ZA
dc.typeArticleen_ZA
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