Investors perception of share price movement with respect to share buyback and dividend announcement

Part-A of dissertation report submitted in partial fulfilment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION By GAURAV AGARWAL (Registration No. 1221405)

Under the guidance of Prof. Latha Ramesh

Institute of Management Christ University, Bangalore December 2013

CHAPTER 1 INTRODUCTION

1. INTRODUCTION:
Equity shares, the most riskier investment instrument in market always associated with various expectations of investors. Equity share price is a variable which moves along with different events. We can say as share buyback, dividend announcement, stock splits, spin offs, mergers and acquisitions, right share issues, bonus issue, private placements etc. Investors perception is very closely associated with share price while buying or selling happens in share market and hence changes when any of these events happens related to any of the company. Her in this study our aim is to find out how share prices are affected by share buyback and dividend announcement. This is an event study which is related to high volatility of market in terms of stock prices with respect to such events generally share buyback is done by a firm to reverse the trend of declining stock prices. So it can be said that share buyback is an important area in financial research because of its strong implication for corporate strategy. The another part of the study is to analyze the signaling effect of share repurchase and dividend announcements in terms of abnormal returns based on the BSE 500 companies which has announced dividend and used share buyback option during Apr-2008 to Mar 2013. Over the last two decades many companies have announced a significant number of share buyback and dividend which has affected the market as well as attracted many researchers. In USA many of the companies started share buybacks in early 60s. In Europe it was started in 1980s. while in Asia share buyback in many countries was allowed in between 1990 to 2000. Also the amount spent on share buyback by S&P 500 companies has been exponentially increased in last decade. In Indian context share buyback was allowed after an amendment to Companys Act 1956. There were many factors behind this as one of them was depression in stock market in 1996, so regulatory bodies found share buyback as a feasible solution for bringing the stock market up because it is seen that, when a company buys it own share , generally investor perceives that the share price will go up and hence share buyback prices are generally higher than what it is currently in the market. Another part of the study is based upon behavioral finance. To know the investor perception in terms of stock price with respect to these events based on a questionnaire means what exactly an investor perceives when stock buybacks and dividend announcements are done.

These perceptions are related to market efficiency and based upon few variables as requirement in short term, outlook towards the company and right time to invest in the company.

1.1DIFFERENT CORPORATE ACTIONS AND EVENT :

It is very important for an investor to understand various corporate actions which affect share prices and future performance of company. In efficient market these information are generally publically available so investors can make rational decision regarding buy or sell the shares subsequent to these events. These events are based upon the consensus of board of directors and shareholders. To understand these events we can refer the following point:

1.1.1 SHARE BUYBACK:

As the name suggest share buyback means when a company reduces its number of shares in market by buying it back from shareholders. Hence the earning per share increases and finally resulting in increase of share price. Generally shares are repurchased when the price of share is undervalued. At this time company can profitably buyback the shares because few retail investors are very much interested to sell the share at low price but higher than market price. There may be different purposes of share buyback as if company is not able to reinvest its profits to any other profitable event or there are no profitable acquisitions in market . may be shares are undervalued and company has reached in maturity. Overall share buyback increase the value of shareholders and hence it is not the way of manipulation. The extent of change in share price because of share buyback depends upon whether the share are dilutive or ant dilutive, numbers of shares which are bought back and changes in capital structure of company.

1.1.2 DIVIDENDS: generally a company can issue dividends in two forms one is stock dividend and another is cash dividend. Out of these two one type of dividend can be given over a specific time period but simultaneously another type of dividend can be given. Dividend is paid from distributable net profit of company and hence it affect the equity capital. In cash of cash dividend, shareholder receive cash as % dividend on market value of share. While in case of stock dividend, shareholder get more number of share as in proportion of their existing number of shares.

1.1.4 RIGHT ISSUES: It implies the issuance of new or additional shares to existing shareholders of company. These offers are given before it is offered to public. 1.1.3 STOCK SPLIT: stock split is also referred as bonus share. It means dividing each outstanding share of company by reducing their prices. Hence market reactions and adjustment can be seen on stock splits.after stock splits the market capitalization of the company remains same but volume of equity shares increases. Generally stock split is done to increase the liquidity of shares and bring them into the reach of retail investor by lowering prices. A company may decide to use a reverse split to shed its status as a "penny stock". Other times companies may use a reverse split to drive out small investors. 1.1.5 MERGERS AND ACQUISITIONS: Merger means formation of one entity because of combination of two equal entity and acquisition means one company takes over another weak entity .In the case of an acquisition, however, a company seeks out and buys a majority stake of a target company's shares; the shares are not swapped or merged.

1.2 BUYBCAK ACTIVITY IN INDIA:

share buyback in India was initiated in 1998 after SEBI clearance. The main purpose of this was to increase the undervalued share price, prevent from hostile takeover, to maintain a good capital structure and showing a positive signal to the market about the future prospects of the company. After SEBIs clearance in 1998 , share buyback activity remained low in India. It was March 1999 when first share buyback was made. Initially till year 2002-03 it was very less but at the time of global recession number of share buybacks increased. The relaxation of share buyback rules in October 2001 gave a Temporary fillip to share buyback

activity, raising the number of Buyback offers to 60 during the fiscal year 2001-02 and to 79 during 2002-03. There are various methods of share buyback as tender offer, open market through stock exchanges. Making a choice between these two options depends upon the management of the company Shareholders have their own preference for a particular method. Generally shareholder has preference for tender offer because of fixed price and arbitrage opportunity. In contrast companies have their preference for open market through stock exchanges. Therefore it is very important to look from both Shareholders & Companies point of view that which way they would prefer. Apart from that there are other methods of share buyback are book building process, from odd lot and employees shares issued either as stock option or sweat equity. Main objectives behind share buyback are as following a) Build Investor faith b) Price recovery as positive signal for fair market price of share c) Improvement in financial ratios such as EPS, P/E and ROA d) Increase the concentration of rights of shareholders and reduce dilution e) Getting surplus cash f) Strengthening the voting power of promoters g) To provide an exit route to shareholders in the case of listed shares which are hardly traded Regulations related to share buyback in India: special resolution is required and buyback should be completed in 12 months . promoters can not participate in case of open market method buyback should be authorized in article of association of company only applicable for fully paid-up shares

Amount used for the buyback should not exceed 10% of the total paid-up capital and free reserves of the company.

Buyback should not be more than 25% of the paid up capital. In other words buyback should not be more than 25% of outstanding shares.

After buyback debt equity ratio of the company should not exceed 2:1

1.3 OVERVIEW OF DIVIDEND ANNOUNCEMENT:

There are two types of investors one who prefer returns on equity shares in terms of dividends and others look for capital appreciation. While market is bullish an investor can get return in the form of capital appreciation but in bearish market dividend is the way. It can be said that dividend is the cost of equity to equity shareholders. One more thing which is associated with dividend payments that is dividend distribution tax which is paid by company. Dividend announcement is closely associated with investors perception because if it is paid as per the expectation then share prices go up and vice versa.

CHAPTER 2 REVIEW OF LITERATURE

II. REVIEW OF LITERATURE

Comment and Jarrell (1991) investigated the signaling hypothesis in the context of stock repurchase announcements. Three main methods of repurchasing stock were examined by them as Dutch auction, tender offers and open market repurchases. It was concluded that maximum information is received by investors in case of tender offer while least information is received in case of open market repurchase. In this signaling hypothesis it was also found that firms repurchase to get maximum benefits from share buyback when their share price is most undervalued. Research also focuses on changes in earnings of firm surrounding stock repurchases. (Jarrell, 1991) Bartov, Eli (1998) analyzed 150 firms which announced share repurchase 1986 to 1992. At the same time other firms in the same industries that preferred to increase dividends realized that share buyback firms had higher book to market ratio and higher proportion of institutional investors. So it can be said that there are two advantages in share buyback as tax advantage and solution to the problem of undervaluation. Thus it consists of saving of dividend distribution tax. (Bartov, 1988) It was found that firms repurchase stocks to distribute excess cash flow. There is a positive relationship between stock repurchases and levels of cash flows [see for example, Stephens and Weisbach (1998); Vermaelen (1981)]. Harris and Ramsay (1995) find that the share buyback activity creates value for the company and the remaining shareholders. (Jensen, 1986) Vermaelen (1981) and Ikenberry, Lakonishok and Vermaelen (1995) found abnormal returns of approximately 3% over a two-day announcement period. Ikenberry, Lakonishok and Vermaelen (1995) hypothesize that a signaling mechanism is serve by stock repurchase to provide a new information. The signaling hypothesis led to an investigation of the long-run performance of companies announcing stock repurchases. Using a sample of 1,239 open market repurchases announced between 1980 and 1990, they show that investing in companies that announce stock repurchases results in 12.4% abnormal returns over 4 years. However their examination was done without regard to whether the programs were actually

completed. Firms seem to decide to repurchase when they are undervalued and the market discounts only part of this information at the announcement. (Ikenberry, 1995) It will be very significant to talk about financial policy indifference theorem of Miller and Modigliani (1961), in perfect and complete markets there should be no positive market reaction to any payout announcements, and stock repurchases and dividends would be interchangeable. In fact, payout policy would not create any value and any cash distributions to shareholders would be obsolete. Two questions relevant to this paper arise in light of the Miller and Modigliani s (1961) payout policy indifference theorem: What factors create the positive market reaction to payout announcements? What explains the observed crosssectional differences in the market reaction? In the corporate finance literature some of the assumptions of perfect and complete markets have been lifted to explain empirical evidence, which is often at odds with the dividend policy indifference theorem. (Modigilani, 1961) Outside investors have imperfect information about the profitability of firms and the cash dividend are taxed at a higher rate than capital gains .It is shown that under these conditions , such dividend functions as a signal of expected cash flows. this paper explains why firms may pay dividends despite the tax disadvantage of doing so. And provides the result relates the equilibrium level of dividend payout to the length of investors' planning horizons. In the signaling model of Bhattacharya (1979) and Miller and rock (1985) cash distributions to the shareholders convey positive information about firms future earnings. (Bhattacharya, 1979) The study says that the open market repurchase and self tenders , these both are greeted on announcement with significant stock price increase it is very important to identify the source of these gains .buyback gains might thus be attributed to different wealth transfer or distributional effects. The wealth transfer is then from selling to retaining shareholders. On expropriation theories, a premium price repurchase benefits selling shareholders at the expense of retaining claimholders , who might include both debt and equity holders . According to tax theories, buybacks gains are attributed to wealth transfers from the state through reduced personal or corporate taxes. it is unlikely that the buyback gains can be explained on distributional theories, and among competing efficiency theories. On signaling theories, the repurchase reveals the firms to be undervalued, determining informational

asymmetries between the firm and outside investors. When a repurchase corrects market mispricing in this way, buyback policies increase the allocate efficiency of stock markets through prices which better reflect firm value. In addition, buyback signals economize on the screening or information production costs which investors incur in the valuing firm with more information provided by the firm, less need be produced by the investors. (F.H.Buckley, 1990) On signalling theories, the significant announcement effects of open market repurchases and self-tenders are attributed to a message of hidden firm value. Other efficiency explanations of buyback gains might be advanced, but none of them can account for the special features of premium self-tenders. The signal of undervaluation serves efficiency goals by economizing on investor screening, and in promoting a better mix of investors with high quality firms. It is unlikely that these efficiences are available through buyback substitutes, such as pro rata dividend distributions. Repurchase have not only became an important form of payout for US companies , But also that firms finance their share repurchases with funds that otherwise would have been used to increase dividend . it was found that young firm have a higher propensity to pay cash through repurchase than they did in the past and that repurchase have become the preferred form of initiating a cash payout. Although large established firms have generally not cut their dividends, they also show a higher propensity to payout through repurchases. These findings indicate that firms have gradually substituted repurchases for dividends. (Gustavo Grullon, 2002) A study was perform to examine empirically the announcement period price reaction and whether management is acting in the best interest of non rendering shareholders is when it engages in targeted share buyback. An exhaustive list of all the financial parameters was considered for the purpose of analysis and the data was collected through online databases .the main sample came from SEBI website which announced, conduct and completed share buyback program over the period of 1991 to 2001. A trend analysis was performed on various parameter like share prices of these companies during and post buyback period. Various performance measures were also used to draw conclusion regarding their trends from pre buyback to post buyback period. The study

established for the Indian corporate the long term advantages of share buyback are not clear. Buyback process is generally used to improve the shareholding of promoters of the company and with a view to impart short term gains for the investors. (Mishra, 2004) Stock price behavior surrounding share repurchase announcements made by Danish companies between 1990 to 2007 was examined . Share repurchase is in important and established toll on the Danish market for returning excess cash to the shareholders. Analysis shows, much as in the case of most other markets , those stock prices in Denmark go up in response to open market share repurchase announcements . Total data sample of event consists of 577 share repurchase announcements and 143 annual general meeting convening notices. The empirical test based on Mcnallys model with an eevent study abnormal return method shoe that the average abnormal return in a 7 day event window, around a share repurchase announcement is 1.07%. the most important results are found when only looking at the 1st share repurchase announcement , were they found significant abnormal returns for the window lengths of 0,3,,7 and 11 days with abnormal returns of 0.93% for 3 day event window(-1;+1) . (Aggaard, 2007) Study examines the stock markets reaction to dividend information and proposes that the dividend announcement has an impact on the market price of the shares . The market will react positively , if the dividend is upto the expectation level of the equity investors . 15 most traded companies during the year 2009 have been selected on random basis. These companies have announced their dividend during the year 2009. Companies that have any price sensitive information during the event window (-30days to +30 days) are eliminated . Data is collected from NSE website. Using an event study methodology with CAAR model paper find that despite of investors do not gain significant value in the period proceeding as well as on the dividend announcement day. Yet they can gain value in the post announcements periods. The evidence nevertheless shows that dividend increases lead more positive abnormal returns, supporting the Efficient market hypothesis. (Gupta, 2010) There is another description for the firms choice regarding a dividend or a stock repurchase for giving returns to its stockholders. It also provides an examination of the impact of the firms disbursement decision on the stock markets resulting reassessment of the value of the

firm. Before analyzing the disbursement decision, study examine the stock market effects of dividends and stock repurchases using an event study methodology with the help of Cumulative Abnormal Return model and market model that corrects for the possible variance change effects of cash distribution announcements. Finally, results shows that firms utilizing open-market stock repurchases, the observed choice of disbursement method are the result of a deliberate and specific decision made by the firm in the interest of maximizing the wealth position of its stockholders (based on the specific characteristics of the firm). The stock market then reflects these choices when it assesses the firms value on announcement of the distribution. (Noel Reynolds, 2004) A conditional event study shows that firms choose tender offers when they have financial slack and large shareholders that monitor management. Firms prefer the open market repurchase in times of market turbulence or weak business conditions. Furthermore, firms choice of the repurchase program is systematically related to their determination of repurchase terms. The terms, in turn, affect the announcement period price reaction. Finally, Markov chain Monte Carlo (MCMC) method model predicts repurchase terms and the announcement period price reaction had an alternative repurchase program been employed, and the results report that fixed-price tender offers are accompanied by an abnormal announcement period return of 8.3%, Dutch auctions an abnormal return of 7.5%, and open market repurchases a return of 2.3%. To conclude open market share repurchase programs are weaker signals of stock undervaluation than are tender offers. Despite the fact that open market repurchases are weaker signals, these programs represent approximately 90% of the dollar value of all announced repurchase programs in the U.S. (kai li, 2004) Given the growth in the importance and popularity of share repurchases, the study use analternative time-series approach to test various hypotheses on share repurchases and dividends. Each hypothesis is formulated based on a Vector Auto-regression (VAR) of relevant variables and characterized as restrictions on the VAR, thus providing a measure of the empirical validity. By investigating both share repurchase and dividend payout policies in

a time-series VAR context, and account for the dynamic and multi-dimensional nature of the two payout policies. Therefore, analysis provides a comprehensive understanding of various hypotheses of dividends as well as those of share repurchases. Findings can be summarized as follows. First, share repurchases do not contain additional information about future earnings, whereas dividend changes do. Second, share repurchases are significantly related to the undervaluation, whereas dividends are not. Third, share repurchases are strongly associated with temporary components of earnings, whereas dividends are not. Fourth, share repurchases and dividends are not perfect substitutes. They are both complements and substitutes. (Oliver Meng Rui, 2004) Study examined the share price behavior surrounding initiation announcements of open market share repurchase programs, the price impact of repurchase trading, and the long-run abnormal stock performance following the announcements by using CAR model applying a standard event study methodology with the market model as benchmark for calculating abnormal returns. The study use a detailed dataset on open market share repurchase programs by Swedish firms which have to disclose their repurchase transactions on a daily basis. The test statistic is been used to evaluate the significance of the average abnormal return each repurchase. The initial sample includes all open market share repurchase programs with actual repurchases that were authorized during the period March 2000 through December 2009 by Swedish firms listed on the Stockholm Stock Exchange. Information on the share repurchase transactions was collected from NASDAQ OMX Stockholm. The results show that initiation announcements of open market share repurchase programs exhibit a two-day abnormal return of approximately 2%. The price impact on the actual repurchase days is positively correlated with the daily repurchase volume. Finally, CAR event study methodology suggests that repurchase trading provides price support and that the market participants detect and perceive the repurchase announcement and the first repurchase days in a repurchase program as a signal of undervaluation. (Rasbrant, 2011)

CHAPTER 3 RESEARCH DESIGN AND METHOD OF STUDY

3.1 OBJECTIVE OF STUDY:

To observe the investors perception about returns on stock with related to share buyback and dividend announcement by validating it by analysis of secondary data. To check how market reacts with two mentioned events as share buybacks and dividend announcement To analyze abnormal returns across different time windows To know which corporate strategy is better to control the declining trends of share price of the firm based upon the calculations. This is an event study base upon primary data and secondary data. Primary data is based upon investors perception regarding stock price behavior with respect to share buyback and dividend announcement. After collection of primary data we need to find out the correlation and regression between the variables. The validation of primary data is based upon statistical analysis of secondary data.

3.2 SCOPE OF STUDY: This study covers share buyback and dividend announcement related to cash market as the data analysis is for equity markets, investors perception about returns based on these events their psychology to trade and how it lead to volatility and generate abnormal returns in market around the events happening. .

3.3 PRIMARY DATA COLLECTION AND ANALYSIS: Collection of primary data is based upon a questionnaire. This questionnaire consist of different variables. These variables may be correlated with each other. Variables covered in questionnaire are as Investors look out for returns( capital appreciation or dividend income) Base of their choice for investing in particular stock Relationship scale between dividend announcement and share price Event dates Form of Indian stock market Abnormal returns

Primary data collection consists of 50 questionnaires filled by different investors and investment professionals. After collection of primary data analyzed by following a regression run. Another part of the study is based upon time series data. This follows secondary data collection and analysis. 3.4 SECONDARY DATA COLLECTION AND ANALYSIS: This is an event study based upon time series data. This has the following framework: The share price of BSE companies (different indices) who has announced the dividend and used share buyback option, is taken from BSE websites for the last 5 years period(April 2008 to March 2013) by the way of random sampling. Computation of market return and security return will be performed using Microsoft Excel and further cumulative abnormal returns will be calculated using CAAR model (cumulative average abnormal returns). The time window with respect to the share prices signaling around share repurchase and dividend announcementis taken as 10 days (-10 to +10), 5 days (-5 to +5), 1 day (-1 to +1). For the analysis of primary data descriptive frequency analysis is done Using SPSS as statistical tool and independent t-test is performed for secondary data analysis to check if the result is statistically significant or not. 3.5 COMPUTATION OF ABNORMAL RETURNS Market adjusted abnormal returns were calculated as: ARij = RTij - RMij (abnormal return of a firm on a particular day) CARij = ARij (cumulative abnormal returns of the firm ) CAR = (CARj ). +(CARn) n whereas: ARij = abnormal return for firm j on day i. RTij = actual return for firm j on day i. RMij = return on the BSE 500 Index on day i. n= number of companies investors perception will be

t-test: to check the significance of daily average abnormal returns from 0

where, SARt is standard deviation of abnormal returns of sample firms on day t. One way ANNOVA test and post hoc tuckey test will be done for analyzing the hypothesis

3.6 HYPOTHESIS:
H0 a). There is no signaling effect on share price around buybacks b). there is no signaling effect on share price around dividend announcement c). there is no significant difference in the cumulative abnormal returns of share prices around buybacks and dividend announcement while comparing 3 event windows i). 1 day and 5 days ii) 1 day and 10 days iii) 5 days and 10 days H1 a). there is signaling effect on share price around buybacks b). there is signaling effect on of share price around dividend announcement c). there is significant difference in the cumulative abnormal returns of share prices around buybacks and dividend announcement while comparing 3 event windows i). 1 day and 5 days ii) 1 day and 10 days iii) 5 days and 10 days

3.7 LIMITATIONS OF THE STUDY: The sample size of primary data for the study is short and based on one particular location. In case of secondary data , it is obtained from only BSE website which does not cover Other stock exchanges. Also it is based upon random sampling which may left few important buyback and dividend announcement.

CHAPTER 4 INDUSTRY REVIEW

4.1 BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange (BSE) is located at Dalal Street in financial capital of India, Mumbai. It is the oldest stock exchange of India. BSE was established in 1875. During last 138 years, BSE has provided the platform for raising capital and facilitated the growth of the corporate sector of India. BSE is a corporatized and demutualized entity having broad shareholder base. More than 5000 companies are listed on BSE. Total market capitalization of companies listed on BSE as on January 2013 was 1.32 trillion. BSE is worlds 5th most active exchange in terms of number of transactions. The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for the majority of the equity trading in India. The Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. This automated, screenbased trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million orders per day.

Hours of operations
Session Beginning of the Day Session Pre-open trading session Trading Session Position Transfer Session Closing Session Timing 8:30 - 9:00 9:00 - 9:15 9:15 - 15:30 15:30 - 15:50 15:50 - 16:05

FEW MAJOR EVENT IN LAST 5 YEARS:

Launching of BSE IPO Index was done on 24 August 2009. BSE introduced trade details facility for the Investors 1 October 2009. 5 October 2009 BSE Introduced New Transaction Fee Structure for Cash Equity Segment 25 November 2009 BSE launched FASTRADE - a new platform for market access

On 4 January 2010 the Market timing of the exchange was changed to 9.0 a.m. - 3.30 p.m.

12 May 2010 Dissemination of Corporate Action information via SWIFT platform Introduction of Smart Order Routing (SOR) on 29th September 2010 Exchange hosted platform was launched on 11th October 2010 SENSEX closes above 21,000 for the first time on 5th November 2010 Commencement of Volatility Index on 12 November 2010 7th January 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 year full-time MBA program specializing in Financial Market. Launching of BSE - SME Exchange Platform on 13th March 2012 SENSEX becomes S&P SENSEX as BSE ties up with Standard and Poor's to use the S&P brand for Sensex and other indices (19 February 2013).

BSE indices: The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India -Mumbai, Calcutta, Delhi, Ahmadabad and Madras. The popular indices are SENSEX, BSE-100, 'BSE-200, BSE-500, DOLLEX-200, BSE IPO and other Individual sectorial Indices. Graph of S&P BSE SENSEX monthly data from January 1991 to May 2013

4.2 NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange (NSE) is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading.NSE has a market capitalization of around US$ 0.989 trillion in August 2013. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. There are at least 2 foreign investors NYSE Euro next and Goldman Sachs who have taken a stake in the NSE.As of 2006 the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%. Major events associated with NSE are as following:

Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model.

Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India.

Co-promoting and setting up of National Securities Depository Limited, first depository in India

Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the broker community.

Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives

Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India.

NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBCTV18.

NSE.IT Limited, setup in 1999, is a 100% subsidiary of the National Stock Exchange of India. A Vertical Specialist Enterprise, NSE.IT offers end-to-end Information Technology (IT) products, solutions and services.

NSE (National Stock Exchange) was the first exchange in the world to use satellite communication technology for trading, using a client server based system called National Exchange for Automated Trading (NEAT). For all trades entered into NEAT system, there is uniform response time of less than one second.

Currently, NSE has the following major segments of the capital market:

Equity Futures and options Retail debt market Wholesale debt market Currency futures Mutual fund Stocks lending and borrowing

NSE's normal trading sessions are conducted from 9:15 am India Time to 3:30 pm India Time on all days of the week except Saturdays, Sundays and Official Holidays declared by the Exchange (or by the Government of India) in advance. The exchange, in association with BSE (Bombay Stock Exchange Ltd.), is thinking of revising its timings from 9.00 am India Time to 5.00 pm India Time.

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

Primary data analysis based upon the responses for different variables mentioned in questionnaire:

Analysis of investors perception with regard to share buyback announcement:

According to you, what kind of movement in share price around share buyback announcements? Frequency Percent Valid Percent Cumulative Percent UPWARD DOWNWARD Valid NEUTRAL Total 19 50 38.0 100.0 38.0 100.0 100.0 19 12 38.0 24.0 38.0 24.0 38.0 62.0

When do you think the share price reacts the most with respect to buybacks? Frequency Percent Valid Percent Cumulative Percent AT THE TIME OF ANNOUNCEMENT AFTER THE Valid ANNOUCEMENT WHEN THE BUYBACK IS DONE Total 19 28.0 38.0 28.0

14

38.0

28.0

66.0

17 50

34.0 100.0

34.0 100.0

100.0

Interpretation: Baased upon frequency table we can say that equal number of investors (38%) perceive upward and neutral movement when buyback is announced . while less number of investors perceive the downward movement in share price with regard to buyback announcement. In terms of time frame of event as buy back announcement, 28% investor thinks the price will be fluctuated after the announcement , 34% investors thinks the fluctuation happens in share price when the buyback is proceeded by the company. And the more number of investors (28%) think the fluctuation happen exactly at the time of buyback announcement. Thus Ho is rejected here. Analysis of investors perception with regard to share dividend announcement:

According to you, what kind of movement in share around dividend announcements? Frequency Percent Valid Percent Cumulative Percent UPWARD DOWNWARD Valid NEUTRAL Total 15 50 30.0 100.0 30.0 100.0 100.0 26 9 52.0 18.0 52.0 18.0 52.0 70.0

When do you think the share price reacts the most with respect to dividend? Frequency Percent Valid Percent Cumulative Percent AT THE TIME OF ANNOUNCEMENT AFTER THE Valid ANNOUCEMENT WHEN THE DIVIDEND IS PAID Total 18 36.0 36.0 36.0

16

32.0

32.0

68.0

16 50

32.0 100.0

32.0 100.0

100.0

Interpretation: Baased upon frequency table we can say that 52% of investors perceive upward and 30% of investors think neutral movement when dividend is announced . while less number of investors (18% )perceive the downward movement in share price with regard to dividend announcement. In terms of time frame of event as dividend announcement, 32% investor think the price will be fluctuated after the announcement , 32% investors thinks the fluctuation happens in share price when the dividend by the company. And the more number of investors (36%) think that the fluctuations happen exactly at the time of dividend announcement. Thus Ho is rejected here. 5.2 Data analysis of share price behavior with share buyback announcement:

1. List of Buyback Companies (Table 1) Scrip Code 505537 512070 500390 500038 503806 532892 533293 531599 532689 532832 500049 500302 500696 500325 504067 523704 500227 531349 532749 Announcement Date 30-Mar-12 30-Apr-12 7-Feb-11 14-Feb-11 17-Jul-09 18-Apr-13 28-Dec-11 18-Jan-11 19-May-11 12-Dec-11 16-Apr-12 14-Oct-10 4-Jun-10 12-Jan-12 7-Jul-09 1-Nov-12 4-Aug-11 29-Dec-09 15-Jun-12

Scrip Name

Industry

Index

Zee Entert UPL Reliance Infra Balrampur Chini SRF Motilal Oswal Kirloskar Oil Engines FDC PVR Indiabulls Real Est Bharat Elect Piramal Ent Hindustan Unilever RIL Zensar Tech Mastek Jindal Poly Panacea Bio Allcargo Logistics

Broadcasting & Cable TV Agrochemicals Electric Utilities Sugar Textiles Finance (including NBFCs) Auto Parts & Equipment Pharmaceuticals Specialty Retail Realty Defense Pharmaceuticals Personal Products Integrated Oil & Gas IT Consulting & Software IT Software Products Commodity Chemicals Biotechnology Transportation Logistics

BSE100 BSE100 BSE100 BSE500 BSE500 BSE500 BSE500 BSE500 BSE500 BSE200 BSE200 BSE200 Sensex Sensex BSEsmall cap BSEsmall cap BSEsmall cap BSEsmall cap BSEsmall cap

The above table shows the list of companies announced share buyback which have been included in the sample and for the convenience of further study and analysis. 4.2 Cumulative Abnormal Return ( in %) of Buyback Companies for Time Frame ( -10 to +10 ) (Table 3)

Company name Allcargo balrampur chini Bharart elec. Carin FDC HUL Indiabulls Jindal Kirloskar Mastek Motilal Pannecea Piramal PVR REL infra RIL SRF UPL ZEE Zensar

10 Days CAR -6.81% -2.09% -2.65% 2.49% 4.87% 4.38% -14.41% -5.81% -3.56% -1.47% 2.68% -1.87% -5.25% 0.16% -10.64% 6.11% 20.03% -1.46% 0.94% 17.38% 0.15%

Interpretation Table shows the CAR of buyback companies for event window of 10-days to +10 days. Around 11 companies has shown a negative return out of the total of 20 sample companies. That means around 45% of companies has noted positive return for 10 day event window when compared to 65% of companies shown negative return. 4.2 Cumulative Abnormal Return ( in %) of Buyback Companies for Time Frame ( -5 to +5) (Table 3)

Company name Allcargo balrampur chini Bharart elec. Carin FDC HUL Indiabulls Jindal Kirloskar Mastek Motilal Pannecea Piramal PVR REL infra RIL SRF UPL ZEE Zensar

5 Days CAR -8.83% 1.96% -0.78% 0.02% 9.65% 5.84% -17.94% 7.03% -2.93% 9.19% 7.45% 5.52% 4.73% 2.74% -8.44% 4.61% 13.66% 5.51% 0.75% 7.28% 2.35%

Interpretation Table shows the CAR of buyback companies for event window of 5-days to +5 days. Around 15 companies has shown a negative return out of the total of 20 sample companies. That means around 75% of companies has noted positive return for 5 day event window when compared to 25% of companies shown negative return. 4.2 Cumulative Abnormal Return ( in %) of Buyback Companies for Time Frame ( -1 to +1) (Table 4) Company name

1 Day CAR Allcargo balrampur chini Bharart elec. Carin FDC HUL Indiabulls Jindal Kirloskar Mastek Motilal Pannecea Piramal PVR REL infra RIL SRF UPL ZEE Zensar 0.52% 3.18% -1.10% 2.37% 1.12% 2.89% -1.14% 0.04% 3.03% 7.77% -2.98% 7.67% 1.57% -1.11% -1.26% -2.06% -3.92% 4.69% -0.43% 6.20% 1.35% Interpretation Table shows the CAR of buyback companies for event window of -1 day to +1 day. Around 8 companies has shown a negative return out of the total of 20 sample companies. That means around 60% of companies has noted positive return for 1 day event window when compared to 40% of companies shown negative return.

Analysis of data of share buy back announcement using independent t-test: 1. For 10 days and 5 days window of buyback announcement:
Group Statistics

Days 10 day CAR 10 & 5 Days CAR 5 day CAR

N 20 20

Mean .1510 2.3510

Std. Deviation 8.13615 7.40649

Std. Error Mean 1.81930 1.65614

Independent Samples Test Levene's Test for Equality of Variances F Sig. t df Std.Sig. Error (2Difference Mean tailed) Difference 95% Confidence Interval of the Difference Lower Equal variances 10 & 5 Days CAR Equal variances not assumed .894 37.669 .377 -2.20000 2.46021 -7.18188 2.78188 assumed .027 .871 .894 Upper t-test for Equality of Means

38

.377

-2.20000 2.46021

-7.18044

2.78044

Significance value is more then alpha (.05) (sig.> .05) in case of comparison of 5 day window with 10 day window of buyback announcement, hence Ho is selected which is equal variances are assumed. It means that cumulative abnormal returns value is statistically same (87.1%) or equal for the 5 days window and 10 days window. 2. For 1 day and 5 days window of buyback announcement:
Group Statistics Days2 5 days CAR 1 & 5 Days CAR 1 day CAR 20 1.3525 3.35850 .75098 N 20 Mean 2.3510 Std. Deviation 7.40649 Std. Error Mean 1.65614

Levene's Test for Equality of Variances

Independent Samples Test t-test for Equality of Means

Sig.

df

Sig. (2tailed)

Mean Difference

Std. Error Difference

95% Confidence Interval of the Difference Lower Upper 2.68277

Equal variances 1&5 Days CAR Equal variances not assumed .549 26.497 .588 .99850 1.81845 assumed 5.831 .021 .549 38 .586 .99850 1.81845

4.67977

2.73598

4.73298

Sig. value is less than alpha (.05) (sig.< .05) in case of comparison of 1 day window with 5 day window of buyback ammouncement, hence Ho is rejected which is equal variances are not assumed. It means that cumulative abnormal returns value is statistically not same (2.1%) for the 1 day & 5 days window. 3. For 1 day and 10 days window of buyback announcement:
Group Statistics Days1 1 day CAR 1 & 10 Days CAR 10 days CAR 20 .1510 8.13615 1.81930 N 20 Mean 1.3525 Std. Deviation 3.35850 Std. Error Mean .75098

Independent Samples Test Levene's Test for Equality of Variances F Sig. T df Sig. (2tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Equal variances 1 & 10 Days CAR Equal variances not assumed .610 25.292 .547 1.20150 1.96820 -2.84971 5.25271 assumed 5.361 .026 .610 38 .545 1.20150 1.96820 -2.78292 5.18592 Upper t-test for Equality of Means

Sig. value is less than alpha (.05) (sig.< .05) in case of comparison of 1 day window with 10 day window of buyback announcement, hence Ho is rejected which is equal variances are not

assumed. It means that cumulative abnormal returns value is statistically not same (2.6%) for the 1 day window and 10 days window hence data are statistically significant. Hence more fluctuation occurs in cumulative abnormal returns near to the announcement of share buyback.

5.2 Data analysis of share price behavior with dividend announcement:

List of Dividend Announcement Companies

Scrip Code Scrip Name Industry 2/3 Wheelers Industrial Machinery Personal Products BPO/KPO Transportation Logistics Cement Tyres & Rubber Products Defense IT Consulting & Software Banks Zinc Aluminum Meeting Date 1-Feb-13 2-Nov-12 18-Jun-10 18-May-12 31-Jan-12 25-May-11 29-Nov-12 25-Jun-10 17-Jan-13 9-May-12 21-Apr-11 27-Jun-12 Announcement Date 16-Jan-13 22-Oct-12 4-Jun-10 27-Apr-12 17-Jan-12 19-May-11 16-Nov-12 9-Jun-10 4-Jan-13 26-Apr-12 13-Apr-11 7-Jun-12 Index

532343 501455 500096 532927 526612 500380 500290 500049 532281 532461 500188 500440

TVS Motor Greaves Cotton Dabur India Eclerx Serv Blue Dart JK Lakshmi Cem MRF Bharat Elect HCL Tech PNB Hindustan Zinc Hindalco Inds Mahindra &

S&P BSE 500 S&P BSE 500 S&P BSE 500 S&P BSE 500 S&P BSE 500 S&P BSE 500 S&P BSE 200 S&P BSE 200 S&P BSE 100 S&P BSE 100 S&P BSE 100 S&P BSE SENSEX

500520 500875 533278 500570 532454 500193

Mahindra ITC Coal India Tata Motors Bharti Airtel Hotel Leela IL&FS Invest

Cars & Utility Vehicles Cigarettes,Tobacco Products Coal Commercial Vehicles Telecom Services Hotels

28-May-09

12-May-09

S&P BSE SENSEX S&P BSE SENSEX S&P BSE SENSEX S&P BSE SENSEX S&P BSE SENSEX S&P BSE SMALL CAP

22-May-09 12-May-11 29-May-12 29-Apr-09 23-May-11

12-May-09 3-May-11 7-May-12 15-Apr-09 16-May-11

511208 502157

Mgrs Mangalam Cem

Asset Management Cos. Cement & Cement Products

3-May-12

17-Apr-12 S&P BSE SMALL CAP

16-Apr-12

5-May-12

S&P BSE SMALL CAP

The above table shows the list of companies announced share buyback which have been included in the sample and for the convenience of further study and analysis .

4.4 Cumulative Abnormal Return ( in %)of Dividend Companies for Time Frame ( 10to +10 ) (Table 4) :

company name Bharat electronics Bharti airtel Blue dart Coal india Dabur india Eclerx Greaves Hindustan zinc HCL tech Hindalco ILFS ITC JK lakshmi Leela Mahindra Manglam MRF PNB Tata Motors TVS

10 Days CAR -3.44% 5.85% -5.87% 17.14% -4.07% 6.08% -12.49% 0.08% 7.64% 4.46% -1.20% 22.09% 0.45% -0.49% 7.90% -5.65% 21.36% 12.50% -10.78% 3.74% 3.27%

Interpretation Table 4 shows the CAR of dividend companies for event window of -10day to +10days. Around 12 companies has shown a positive return out of the total of 20 sample companies. That means around 60% of companies has noted positive return for 10 day event window when compared to 40% of companies shown negative return. 4.4 Cumulative Abnormal Return ( in %)of Dividend Companies for Time Frame ( - 5 to +5 ) (Table 4) :

company name Bharat electronics Bharti airtel Blue dart Coal india Dabur india Eclerx Greaves Hindustan zinc HCL tech Hindalco ILFS ITC JK lakshmi Leela Mahindra Manglam MRF PNB Tata Motors TVS

5 Days CAR 3.46% 6.41% 4.55% 21.62% 7.68% 4.90% -0.86% 8.99% 2.10% 0.15% -0.31% 21.09% -4.73% 2.93% -0.48% -4.70% 0.10% -5.50% -1.55% -4.87% 3.05%

Interpretation Table 4 shows the CAR of dividend companies for event window of -5day to +5days. Around 12 companies has shown a positive return out of the total of 20 sample companies. That means around 60% of companies has noted positive return for 10 day event window when compared to 40% of companies shown negative return. 4.4 Cumulative Abnormal Return ( in %)of Dividend Companies for Time Frame ( - 1 to +1 ) (Table 4) :

company name Bharat electronics Bharti airtel Blue dart Coal india Dabur india Eclerx Greaves Hindustan zinc HCL tech Hindalco ILFS ITC JK lakshmi Leela Mahindra Manglam MRF PNB Tata Motors TVS

1 Day CAR 0.66% 2.01% 3.17% 4.60% 5.13% 0.05% 5.01% -2.58% 6.74% 1.77% -0.19% -2.43% -1.48% 0.36% -1.20% 1.10% 4.07% 4.55% 0.10% -2.99% 1.03%

Interpretation Table 4 shows the CAR of dividend companies for event window of -1day to +1day. Around 14 companies has shown a positive return out of the total of 20 sample companies. That means around 70% of companies has noted positive return for 10 day event window when compared to 30% of companies shown negative return. Analysis of data of share dividend announcement using independent t-test: For 10 days and 5 days window of dividend announcement:

Group Statistics DaysD 1.00 10 & 5 Days D_CAR 2.00 20 3.0490 7.53513 1.68491 N 20 Mean 3.2650 Std. Deviation 9.66754 Std. Error Mean 2.16173

Independent Samples Test Levene's Test for Equality of Variances F Sig. t df Sig. (2tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Equal variances 10 & 5 Days D_CAR assumed Equal variances not assumed .079 35.862 .938 .21600 2.74080 -5.34334 5.77534 1.633 .209 .079 38 .938 .21600 2.74080 -5.33246 5.76446 Upper t-test for Equality of Means

Significance value is more then alpha (.05) (sig.> .05) in case of comparison of 5 day window with 10 day window of dividend announcement, hence Ho (part d) is selected which is equal variances are assumed. It means that cumulative abnormal returns value is statistically same (79%) or equal for the 5 days window and 10 days window. For 1 day and 5 days window of dividend announcement:

Group Statistics DaysD2 .00 1 & 5 Days D_CAR 2.00 20 3.0490 7.53513 1.68491 N 20 Mean 1.0285 Std. Deviation 3.06331 Std. Error Mean .68498

Independent Samples Test

Levene's Test for Equality of Variances F Sig. T df Sig. (2tailed)

t-test for Equality of Means

Mean Difference

Std. Error Difference

95% Confidence Interval of the Difference Lower Upper

Equal variances 1&5 Days D_CAR Equal variances not assumed assumed 5.420 .025

1.111

38

.274

-2.02050

1.81882

-5.70251

1.66151

1.111

25.113

.277

-2.02050

1.81882

-5.76557

1.72457

Significance value is less than alpha (.05) (sig.< .05) in case of comparison of 1 day window with 5 days window of dividend announcement, hence Ho (part d) is rejected which is equal variances are not assumed. It means that cumulative abnormal returns value is statistically not same (2,5%) for the 1 day window and 5 days window. For 1 day and 10 days window of Dividend announcement:
Group Statistics DaysD1 .00 1 & 10 Days D_CAR 1.00 20 3.2650 9.66754 2.16173 N 20 Mean 1.0285 Std. Deviation 3.06331 Std. Error Mean .68498

Independent Samples Test Levene's Test for Equality of Variances F Sig. t df Sig. (2tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Equal variances 1 & 10 Days D_CAR Equal variances not assumed .986 22.777 .334 -2.23650 2.26766 -6.93004 2.45704 assumed 14.088 .001 .986 Upper t-test for Equality of Means

38

.330

-2.23650

2.26766

-6.82713

2.35413

Interpretation:

Sig. value is less than alpha (.05) (sig.< .05) in case of comparison of 1 day window with 10 day window of dividend announcement, hence Ho is rejected which is equal variances are not assumed. It means that cumulative abnormal returns value is statistically not same (1%) for the 1 day window and 10 days window hence data are statistically significant. Hence more fluctuation occurs in cumulative abnormal returns near to the announcement of dividend.

CHAPTER 6 FINDINGS, CONCLUSIONS AND SUGGESTIONS

6.1 FINDINGS 1. Investors perceive the signaling effect of buyback announcement on share price fluctuations in terms of upward, downward and neutral movement very close to the announcement date. 2. Investors perceive the signaling effect of dividend announcement on share price fluctuations in terms of upward, downward and neutral movement very close to the announcement date. 3. There has been noticed 1.35% cumulative abnormal return in 3 day event window i.e. one day before and after the buyback announcement. 4. The 10 days CAAR (cumulative average abnormal return) is lesser than 3 days and 5 days event window i.e. 0.15% for buyback announcement. 5. CAAR of all combined observation is highest in 21 day event (-10 to +10) is for SRF ltd i.e. 20.03%, for 11 days window it is highest for again SRF ltd. And for 3 day window i.e. up to next day of the buyback announcement is for UPL ltd. 6. Independent t-test for two event window(1&10 days and 1&5 days) for buyback announcement companies CAR results is significant at 5% level but there is no significant difference in case of comparison of 10& 5days window. 7. As same as the buyback announcements the dividend announcements also noted the significant positive share price change in 10 day event window. 8. In case of dividend announcement 10 days event window CAAR is highest i.e. 3.27% and less for 1 days event window noticed 1.03% CAAR together all observed companies. 9. In the 1-day event window the buyback announcements has noticed more Average Cumulative Abnormal Return i.e. 1.35% than dividend announcements i.e. 1.03% which is same as the findings of previous studies done. 10. In the 5-day event window the buyback announcements has noticed less Average Cumulative Abnormal Return i.e. 2.35% than dividend announcements i.e. 3.05%. 11. In the 10-day event window the buyback announcements has noticed less Average Cumulative Abnormal Return i.e. 0.15% than dividend announcements i.e. 3.27%.

6.2 CONCLUSIONS
From the above critical analysis and findings based on them the following conclusions can be drawn: H0 a). there is no signaling effect on share price around buybacks -Rejected b). there is nosignalling effect on share price around dividend announcemnent- Rejected c). there is no significant difference in the cumulative abnormal returns of share prices around buybacks and dividend announcement while comparing 3 event windows i). 1 day and 5 daysRejected

ii) 1 day and 10 days- Rejected iii) 5 days and 10 days-Selected H1 a). there is signaling effect on share price around buybacks- Selected b). there is signaling effect on of share price around dividend announcement- Selected c). there is significant difference in the cumulative abnormal returns of share prices around buybacks and dividend announcement while comparing 3 event windows i). 1 day and 5 daysSelected

ii) 1 day and 10 days- Selected iii) 5 days and 10 days- Rejected

The only exception in case of dividend announcements is that there can be a fall in share prices if the dividend declared is not matches to the expectation of the shareholders or below of it.

Management or promoters may prefer buyback over dividend due to buyback also increases the proportion of promoters holding in the overall stake of the company and does not go for simply distributing the cash as dividends which also involves the cost of distribution of earning in the form of Dividend Distribution Tax.

The basic objective of the firms going for buyback is to reverse the trend of declining price or to keep tab on it thereby increase the EPS resulting increase in share price which provides a rise in MPS.

6.3 SUGGESTIONS and RECOMMONDATIONS

As the both Buyback and Dividend announcement has positive signaling effect on the share prices the investors can invest in those securities to earn abnormal profits. Few studies claim that if there is an insider practice and the share prices rose on immediate days before the announcement date that gives a signal that management believes that the firms stock is undervalued in the open market thus investors can also take these signals into consideration for their investment decisions.

As both are the methods of cash distribution a management team and promoters should chooses generally the method which provides most good to the shareholders and in the best interest of them as per given situation thereby increases the overall wealth of shareholders.

As the dividend announcements can have both negative and positive impact on the share price due to market expectation. Companies have to correctly identify the expectation of the shareholders in order to have a positive impact on the market share price.

BIBLIOGRAPHY:
Aggaard, H. c. (2007, November). Short-term returns following open-market share repurchase -A study on Danish market. Bartov, e. (1988). Stock Price Behavior Around Announcements of Write-Offs. review of accounting studies , p. n0. 3 vol.6. Bhattacharya. (1979). Imperfect Information, Dividend Policy, and The Bird in the Hand Fallacy. F.H.Buckley. (1990). When the Medium is the Message: Corporate Buybacks as Signals. Gupta, D. D. (2010, July ). Impact of Dividend Announcement on Stock Prices. International Journal of Information Technology and Knowledge Management , pp. 405-410. Gustavo Grullon, R. m. (2002, january). Dividends, Share Repurchases, and the Substitution. the journal of finance . Ikenberry, L. a. ( 1995). Market underreaction to open market. Journal of Financial Economics , pp. 181-208. Jarrell, R. c. (1991, september). The relative signalling powr of dutch auction and fixed price self tender offers and open market share repurchase . the Journal of finance , pp. 1243-1271. Jensen, M. c. (1986, May). Agency Costs of Free Cash Flow, corporate finance and takeovers. American Economic Review, Vol. 76, No. 2 , pp. 323-329. kai li, w. m. (2004, August ). Open Market versus Tender Offer Share Repurchases: A conditional event study. Mishra, D. A. (2004). "AN EMPIRICAL ANALYSIS OF SHARE BUYBACKS IN INDIA". Modigilani, M. H. (1961, october). The journal of business. Noel Reynolds. (2004, June). Managerial decision making and stockholder. Graduate School Theses and Dissertations , pp. 85-87. Oliver Meng Rui, B.-S. L. (2004, november). Time-Series Behavior of Share Repurchases and Dividend. Journal of Financial and Quantitative Analysis , pp. 119-142. Rasbrant, J. (2011, April). The price impact of open market share repurchases. JEl classification , pp. 14-35.