The short-term price impact of actual share repurchase announcements in Norway Navn:

Abstract

The master thesis examines stock performance around the announcement of openmarket share repurchase transactions and the effect of intangible assets and share repurchases. The study uses data on actual share repurchase transactions conducted by firms listed on the Oslo Stock Exchange (OSE). There is evidence that share repurchases generally follows after a negative drift. The results show that the abnormal return around the announcement is 0.30% on average, with a significant t-statistics of 2.05. Intangible assets and abnormal returns also show a correlation. The overall results might suggest that managers, on average, are able to time the market. This thesis is a part of the MSc programme at BI Norwegian Business School. The school takes no responsibility for the methods used, results found, or conclusions drawn. Keywords: Share repurchases, price impact, undervaluation hypothesis, underreaction hypothesis, open market repurchases, information asymmetry