Title page for ETD etd-08112012-175307


Document Type Master's Dissertation
Author Van de Vyver, Riaan
URN etd-08112012-175307
Document Title Stock repurchases by real estate investment trusts : investors’ reactions and the impact on share price performance
Degree MBA
Department Gordon Institute of Business Science
Supervisor
Advisor Name Title
Ms T Pieterse Supervisor
Keywords
  • behavioural finance
  • share price
  • market signalling
  • efficient market hypothesis (EMH)
Date 2012-03-08
Availability unrestricted
Abstract
This study examined the impact of open-market stock repurchases by Real Estate Investment Trusts (REITs) on the share price of the featured company. Two aspects of investment finance are rational behaviour and efficient markets. Both of these concepts were explored to understand why a share repurchase would have an impact on a company share price.

Causal research was conducted to analyse the correlation between a share repurchase event and the share price of the featured company. The share buyback announcements were collected from the Bloomberg database. The holding period returns were calculated and compared to zero to analyse whether there was any momentum or contrarian signals. The holding period returns were also adjusted for the average of the all REIT index to ascertain whether the returns were abnormal or not.

The results have shown share repurchase transactions to be contrarian indicators of share price performance. Even when the results were adjusted for the REIT index, the negative returns continued.

© 2011 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Van de Vyver, R 2011, Stock repurchases by real estate investment trusts : investors’ reactions and the impact on share price performance, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-08112012-175307/ >

F/12/4/796/zw

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