Share repurchases in South Africa : reasons and returns

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dc.contributor.advisorChivaka, Richarden_ZA
dc.contributor.authorSiddle, Andrew McCalmanen_ZA
dc.date.accessioned2015-01-06T19:06:50Z
dc.date.available2015-01-06T19:06:50Z
dc.date.issued2006en_ZA
dc.descriptionIncludes bibliographical references.en_ZA
dc.description.abstractShare 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.identifier.apacitationSiddle, 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/11427/11675en_ZA
dc.identifier.chicagocitationSiddle, 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/11427/11675en_ZA
dc.identifier.citationSiddle, A. 2006. Share repurchases in South Africa : reasons and returns. University of Cape Town.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
dc.identifier.urihttp://hdl.handle.net/11427/11675
dc.identifier.vancouvercitationSiddle 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/11427/11675en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Finance and Taxen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherFinancial Managementen_ZA
dc.titleShare repurchases in South Africa : reasons and returnsen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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