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 AbstractThis 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.
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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/ >
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