Kapitalmarktrelevanz deutscher Aktienrückkaufprogramme

Ralf Schremper ()
Additional contact information
Ralf Schremper: Bertelsmann AG

Schmalenbach Journal of Business Research, 2003, vol. 55, issue 6, 578-605

Abstract: Summary Since the “Control and Transparency in Business Act” (KonTraG) came into effect on 1 May 1998, German firms are permitted to repurchase their own shares. Buy backs gain increasing popularity in Germany and more than a hundred corporations have already been engaged in repurchase programs. However, it is still an unanswered empirical question how the German capital market reacts to share repurchases. Therefore, it will be analyzed employing an event study whether or not there are any excess returns associated with share repurchase announcements. In summary, the evidence indicates that there is a highly significant market reaction on the announcement day and the following day. The cumulative average excess return adds up to 4–5%. Furthermore, trading volumes of repurchasing firms are significantly higher in the announcement period. The capital market reaction is consistent with the dividend substitution hypothesis, and is strongly influenced by the prevailing capital structure.

Keywords: G14; G32; G35; Announcement Effect; Buy Back; Capital Structure; Empirical Study; Event Study; Excess Returns; German Capital Market; Multivariate Regression Analysis; Payout Policy; Share Repurchases; Signaling (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/BF03372716 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sjobre:v:55:y:2003:i:6:d:10.1007_bf03372716

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/41471

DOI: 10.1007/BF03372716

Access Statistics for this article

More articles in Schmalenbach Journal of Business Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().