Share repurchases in South Africa : reasons and returns

 

Show simple item record

dc.contributor.advisor Chivaka, Richard en_ZA
dc.contributor.author Siddle, Andrew McCalman en_ZA
dc.date.accessioned 2015-01-06T19:06:50Z
dc.date.available 2015-01-06T19:06:50Z
dc.date.issued 2006 en_ZA
dc.identifier.citation Siddle, A. 2006. Share repurchases in South Africa : reasons and returns. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/11675
dc.description Includes bibliographical references. en_ZA
dc.description.abstract Share repurchases have long been permitted in the United States of America, but it is only relatively recently that they have become a frequently-used means of returning funds to shareholders in that country. In other countries, it was also only relatively recently that share repurchases were even permitted, and in South Africa, repurchases have been permitted only since 1999, when the Companies Act was amended to allow for them. Repurchases in South Africa are fairly closely regulated, not only by statute, but also, in the case of listed shares, by regulations contained in the Listing Requirements of the Johannesburg Stock Exchange. In essence, the regulations, read with the legislation, allow for three types of repurchase, namely, a specific repurchase incorporating a pro-rata offer; a specific purchase incorporating a specific offer, and a general repurchase. Specific repurchases have more demanding requirements than general repurchases as far analysis in the context of the "signalling hypothesis," and for that reason, the focus of this study is on specific repurchases. Studies in the USA and elsewhere have shown that repurchases may be carried out for any of a number of reasons. Most studies in the USA have also shown that repurchases are associated with significant positive abnormal returns on the share prices; the increase in prices is usually attributed to the signalling hypothesis, which holds that managers use repurchases as a means of signalling to the market that they believe that the shares are underpriced. The objectives of the present study are twofold: - To identify the reasons for South African companies carrying out repurchases; and - To determine whether such repurchases create shareholder value. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Financial Management en_ZA
dc.title Share repurchases in South Africa : reasons and returns en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department Department of Finance and Tax en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MCom en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Siddle, A. M. (2006). <i>Share repurchases in South Africa : reasons and returns</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/11675 en_ZA
dc.identifier.chicagocitation Siddle, Andrew McCalman. <i>"Share repurchases in South Africa : reasons and returns."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2006. http://hdl.handle.net/11427/11675 en_ZA
dc.identifier.vancouvercitation Siddle AM. Share repurchases in South Africa : reasons and returns. [Thesis]. University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2006 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/11675 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Siddle, Andrew McCalman AB - Share repurchases have long been permitted in the United States of America, but it is only relatively recently that they have become a frequently-used means of returning funds to shareholders in that country. In other countries, it was also only relatively recently that share repurchases were even permitted, and in South Africa, repurchases have been permitted only since 1999, when the Companies Act was amended to allow for them. Repurchases in South Africa are fairly closely regulated, not only by statute, but also, in the case of listed shares, by regulations contained in the Listing Requirements of the Johannesburg Stock Exchange. In essence, the regulations, read with the legislation, allow for three types of repurchase, namely, a specific repurchase incorporating a pro-rata offer; a specific purchase incorporating a specific offer, and a general repurchase. Specific repurchases have more demanding requirements than general repurchases as far analysis in the context of the "signalling hypothesis," and for that reason, the focus of this study is on specific repurchases. Studies in the USA and elsewhere have shown that repurchases may be carried out for any of a number of reasons. Most studies in the USA have also shown that repurchases are associated with significant positive abnormal returns on the share prices; the increase in prices is usually attributed to the signalling hypothesis, which holds that managers use repurchases as a means of signalling to the market that they believe that the shares are underpriced. The objectives of the present study are twofold: - To identify the reasons for South African companies carrying out repurchases; and - To determine whether such repurchases create shareholder value. DA - 2006 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2006 T1 - Share repurchases in South Africa : reasons and returns TI - Share repurchases in South Africa : reasons and returns UR - http://hdl.handle.net/11427/11675 ER - en_ZA


Files in this item

This item appears in the following Collection(s)

Show simple item record