Management Perceptions Of Share Repurchases In Emerging Markets: The Case For Malaysia
The purpose of this paper is to study the perceptions of Malaysian chief finance officers (CFO) concerning their reasons for repurchasing shares. We sent a survey questionnaire to the chief finance officers of all the companies listed on the Malaysian Stock Exchange that made repurchase announcem...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management (AAM)
2015
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| Subjects: | |
| Online Access: | http://eprints.usm.my/40032/ http://eprints.usm.my/40032/1/AAMJAF_11%281%29_2015-Art._5%2897-121%29.pdf |
| _version_ | 1848878909805821952 |
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| author | Lee , Siew Peng Isa, Mansor |
| author_facet | Lee , Siew Peng Isa, Mansor |
| author_sort | Lee , Siew Peng |
| building | USM Institutional Repository |
| collection | Online Access |
| description | The purpose of this paper is to study the perceptions of Malaysian chief finance officers
(CFO) concerning their reasons for repurchasing shares. We sent a survey questionnaire
to the chief finance officers of all the companies listed on the Malaysian Stock Exchange
that made repurchase announcements over the period 1 September 1997 until 31
December 2011. The results indicate that the main reason for Malaysian companies to
engage in share repurchases is to protect their share prices from market
undervaluation. This reason supports the signalling hypothesis, which is found in most of
the empirical studies on market reaction to share repurchase announcements. Other
repurchase motives, such as to increase EPS, to adjust capital structure, and to use as a
substitute for cash dividend received less support from our respondents. These findings
are useful, especially to investors for understanding the intention of companies to
repurchase shares. |
| first_indexed | 2025-11-15T17:38:50Z |
| format | Article |
| id | usm-40032 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:38:50Z |
| publishDate | 2015 |
| publisher | Asian Academy of Management (AAM) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-400322018-04-11T04:33:07Z http://eprints.usm.my/40032/ Management Perceptions Of Share Repurchases In Emerging Markets: The Case For Malaysia Lee , Siew Peng Isa, Mansor HD28-70 Management. Industrial Management The purpose of this paper is to study the perceptions of Malaysian chief finance officers (CFO) concerning their reasons for repurchasing shares. We sent a survey questionnaire to the chief finance officers of all the companies listed on the Malaysian Stock Exchange that made repurchase announcements over the period 1 September 1997 until 31 December 2011. The results indicate that the main reason for Malaysian companies to engage in share repurchases is to protect their share prices from market undervaluation. This reason supports the signalling hypothesis, which is found in most of the empirical studies on market reaction to share repurchase announcements. Other repurchase motives, such as to increase EPS, to adjust capital structure, and to use as a substitute for cash dividend received less support from our respondents. These findings are useful, especially to investors for understanding the intention of companies to repurchase shares. Asian Academy of Management (AAM) 2015 Article PeerReviewed application/pdf en http://eprints.usm.my/40032/1/AAMJAF_11%281%29_2015-Art._5%2897-121%29.pdf Lee , Siew Peng and Isa, Mansor (2015) Management Perceptions Of Share Repurchases In Emerging Markets: The Case For Malaysia. Asian Academy of Management Journal of Accounting and Finance, 11 (1). pp. 1-25. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/11-1-5-2015.html |
| spellingShingle | HD28-70 Management. Industrial Management Lee , Siew Peng Isa, Mansor Management Perceptions Of Share Repurchases In Emerging Markets: The Case For Malaysia |
| title | Management Perceptions Of Share
Repurchases In Emerging Markets: The Case
For Malaysia |
| title_full | Management Perceptions Of Share
Repurchases In Emerging Markets: The Case
For Malaysia |
| title_fullStr | Management Perceptions Of Share
Repurchases In Emerging Markets: The Case
For Malaysia |
| title_full_unstemmed | Management Perceptions Of Share
Repurchases In Emerging Markets: The Case
For Malaysia |
| title_short | Management Perceptions Of Share
Repurchases In Emerging Markets: The Case
For Malaysia |
| title_sort | management perceptions of share
repurchases in emerging markets: the case
for malaysia |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/40032/ http://eprints.usm.my/40032/ http://eprints.usm.my/40032/1/AAMJAF_11%281%29_2015-Art._5%2897-121%29.pdf |