Reakcja warszawskiego parkietu na ogłoszenie komunikatu o planowanym nabyciu akcji własnych niedowartościowanych

• Authors: Pieloch, Aleksandra

Title variants

EN

Response of Warsaw Capital Market to the Notice of Planned Buy-back of Undervalued Shares

Abstracts

EN

This article aims to present the results of empirical studies on the evolution of abnormal rates of return on undervalued shares of Polish public companies on notice of planned repurchases of these securities. The study assumed a signaling hypothesis, which states that the share repurchasing may be used by managers as a tool for sending information to the market about undervaluation of these assets. This hypothesis seems to be justified in terms of signaling theory and the theory of information asymmetry. This article is divided into two main parts. The first part presents a theoretical concept of own shares, motives of repurchasing, the internal value of shares and the attractiveness rate of repurchases. The second part presents the results of empirical research on the number of buy-back programs in 2001–2009, and the reasons for carrying out the repurchasing of shares. Main attention is paid to the analysis of the formation of abnormal rate of return on undervalued shares with particular emphasis on the planned size of the repurchasing, buy-back method and the size of the company.

Keywords

EN

undervalued shares; buy-back operations; average abnormal return; internal value of share; signaling hypothesis; attractiveness rate of repurchases

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Acta Universitatis Lodziensis. Folia Oeconomica
• Year: 2012
• Volume: 272

Dates

published

2012

Contributors

author

Pieloch, Aleksandra

• Uniwersytet Łódzki

Identifiers

URI

http://hdl.handle.net/11089/1934