@article{MAKHILLJEAS2019141918519,
    title = {A Study on Share Price Behaviour Around BuyBack and
Dividend Announcements in India},
    journal = {Journal of Engineering and Applied Sciences},
    volume = {14},
    number = {19},
    pages = {7036-7039},
    year = {2019},
    issn = {1816-949x},
    doi = {jeasci.2019.7036.7039},
    url = {https://makhillpublications.co/view-article.php?issn=1816-949x&doi=jeasci.2019.7036.7039},
    author = {N. and},
    keywords = {Repurchase,abnormal returns,cumulative returns,dividends,buyback,ARCH},
    abstract = {Over the past few years in India, many companies have announced significant number of stock
repurchases and dividends. Share repurchase have become an important area in financial research considering
its strong implication for corporate policy. Buybacks were introduced in the year 1998, in India and it has
received attention of all major companies. This study analyses: signaling effect of a share buyback and
dividend announcements, the market reaction and share price behaviour around stock buybacks and dividend
announcement, impact of buyback and dividend announcements on share price. The analysis uses 17 firms
which have announced buybacks and dividends during the period 2015-2017. This study examines the signaling
effect of share price by finding the abnormal return of the share price using 11 days (-5, 0, +5) event period. To
find out whether buyback and dividend announcements has an impact on share prices "Autoregressive
Conditional Heteroskedasticity" (ARCH) Model is used. Result shows that there is positive signaling of share
prices around buyback and dividend announcements. Stock buyback announcement recorded high Cumulative
Abnormal Returns (CAR). It implies that the market reacts more favorably to repurchases compared to dividend
announcements.}
    }