Does the banks’ performance improve after share buybacks?

Autor:	Marina Brogi, Michelangelo Bruno, Valentina Lagasio
Jazyk:	English<br />Italian
Rok vydání:	2023
Předmět:	share buybacks banks’ performance return on equity shareholders’ value pay-out policy banking Risk in industry. Risk management HD61
Zdroj:	Risk Management Magazine, Vol 18, Iss 2, Pp 4-12 (2023)
Druh dokumentu:	article
ISSN:	2612-3665 2724-2153
DOI:	10.47473/2020rmm0124
Popis:	Share buybacks have become a popular way for companies to return capital to shareholders. However, there is an ongoing debate regarding the impact of share buybacks on the performance and shareholder value. This paper starts by examining the literature on share buybacks and aims at testing the signalling hypothesis (ie share buybacks are carried out to signal undervaluation of the stock) on share repurchases performed by banks. More specifically, the analysis conducted measured the impact of share buybacks on banks’ performance as measured by the return on equity (ROE). The results show that there is low significant positive linear relationship between banks’ share buybacks and their ROE.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/6eeb096bbf76417cb0fd5c7dd8aa065d Zobrazit plný text záznamu View record in DOAJ