The impact of share price on open market share repurchases in Malaysia

The purpose of this study is to examine the price behavior of the firms following open market share repurchases in Malaysia. Specifically, this study attempt to test on the impact of share prices of public listed firms listed in Bursa Malaysia on the day of the repurchases and the long run performan...

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Main Author: Goh, Shin Peih
Format: Final Year Project Report / IMRAD
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2012
Subjects:
Online Access:http://ir.unimas.my/id/eprint/9071/
http://ir.unimas.my/id/eprint/9071/3/Goh%20Shin%20Peih.pdf
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author Goh, Shin Peih
author_facet Goh, Shin Peih
author_sort Goh, Shin Peih
building UNIMAS Institutional Repository
collection Online Access
description The purpose of this study is to examine the price behavior of the firms following open market share repurchases in Malaysia. Specifically, this study attempt to test on the impact of share prices of public listed firms listed in Bursa Malaysia on the day of the repurchases and the long run performance after share repurchases took place. This study uses the daily data of the firms' share price collected from the Thomson Reuters Datastream database and the date of actual share repurchases from Bursa Malaysia. The results show that the price impact on the share repurchases day exhibit a positive abnormal return of 0.56% throughout the four years period of study. The long run performance shows the buy-and-hold abnormal return of 46.62% throughout the study. The results indicate that the signaling hypothesis and undervaluation hypothesis exist as investors react positively on firms repurchasing their shares and perceived the firms to be undervalued. The findings of this study are consistent with the findings found in prior studies.
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format Final Year Project Report / IMRAD
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institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:24:32Z
publishDate 2012
publisher Universiti Malaysia Sarawak, (UNIMAS)
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spelling unimas-90712023-09-26T02:05:29Z http://ir.unimas.my/id/eprint/9071/ The impact of share price on open market share repurchases in Malaysia Goh, Shin Peih HB Economic Theory The purpose of this study is to examine the price behavior of the firms following open market share repurchases in Malaysia. Specifically, this study attempt to test on the impact of share prices of public listed firms listed in Bursa Malaysia on the day of the repurchases and the long run performance after share repurchases took place. This study uses the daily data of the firms' share price collected from the Thomson Reuters Datastream database and the date of actual share repurchases from Bursa Malaysia. The results show that the price impact on the share repurchases day exhibit a positive abnormal return of 0.56% throughout the four years period of study. The long run performance shows the buy-and-hold abnormal return of 46.62% throughout the study. The results indicate that the signaling hypothesis and undervaluation hypothesis exist as investors react positively on firms repurchasing their shares and perceived the firms to be undervalued. The findings of this study are consistent with the findings found in prior studies. Universiti Malaysia Sarawak, (UNIMAS) 2012 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/9071/3/Goh%20Shin%20Peih.pdf Goh, Shin Peih (2012) The impact of share price on open market share repurchases in Malaysia. [Final Year Project Report / IMRAD] (Unpublished)
spellingShingle HB Economic Theory
Goh, Shin Peih
The impact of share price on open market share repurchases in Malaysia
title The impact of share price on open market share repurchases in Malaysia
title_full The impact of share price on open market share repurchases in Malaysia
title_fullStr The impact of share price on open market share repurchases in Malaysia
title_full_unstemmed The impact of share price on open market share repurchases in Malaysia
title_short The impact of share price on open market share repurchases in Malaysia
title_sort impact of share price on open market share repurchases in malaysia
topic HB Economic Theory
url http://ir.unimas.my/id/eprint/9071/
http://ir.unimas.my/id/eprint/9071/3/Goh%20Shin%20Peih.pdf