Volltext-Downloads (blau) und Frontdoor-Views (grau)

Long-Term Performance of Share-Repurchasing Companies in Germany: Counter-Evidence to the Efficient Market Hypothesis?

  • This study aims to ascertain whether share-repurchasing companies in Germany observe long-term abnormal returns, a phenomenon that has been extensively discussed in literature over the past decades. Germany is an especially interesting market for this analysis, as share-repurchases were only legalized in 1998 and are subject to sterner regulations compared to markets where repurchasing has had a long tradition. The event sample consists of 169 announcements made between June 2008 and May 2013. Each event is observed for three years following the announcement. To calculate abnormal returns, this study employs the Return Across Time and Securities, Calendar-Time Portfolio, and Buy-and-Hold Abnormal Return approaches, which yield statistically significant abnormal returns after three years of 23.72%, 22.81%, and 57.77%, respectively. The results further indicate most of the price adjustment occurs in the 15 months following the announcement, with only minor corrections thereafter. Overall, the findings of this study suggest the existence of long-term abnormal returns for German repurchasing companies.

Export metadata

Additional Services

Share in Twitter Search Google Scholar

Statistics

frontdoor_oas
Metadaten
Author:Max Madeja
Advisor:Uwe Hack
Document Type:Bachelor Thesis
Language:English
Year of Completion:2021
Granting Institution:Hochschule Furtwangen
Release Date:2021/02/26
Tag:Abnormal return; Germany; Share-repurchase
Page Number:60
Degree Program:IBM - International Business Management
Functional area:Economics
Licence (German):License LogoUrheberrechtlich gesch├╝tzt