Optimal capital structure and share repurchases: a case study of Anglo American Plc

Master Thesis

2016

Permanent link to this Item
http://hdl.handle.net/11427/20437
Files
thesis_com_2016_chadderton_marcus.pdf (688.78 KB)
Authors
Chadderton, Marcus
Supervisors
Thurner, Thomas
Journal Title
Link to Journal
Journal ISSN
Volume Title
Publisher
Publisher

University of Cape Town

Department
Department of Finance and Tax
Faculty
Faculty of Commerce
License
Series
Abstract
During 2006, AAL adopted and implemented its first share repurchase program, which continued up until its suspension in 2008. While management stated that share repurchases would only be done in the interest of shareholders, the repurchase program was disastrous for shareholder value. Management also stated that share repurchases provide the firm with flexibility regarding its capital structure. We investigated the capital structure of AAL for the years 2004 to 2012 from an optimal capital structure perspective. Using a CAPM approach, we find no evidence that AAL targeted or implemented a capital structure, which could be considered optimal.
Description
Keywords
Financial and Risk Management

Reference:

Chadderton, M. 2016. Optimal capital structure and share repurchases: a case study of Anglo American Plc. University of Cape Town.

Collections
Masters