Abstract
Abstract : The study investigates the impact of share repurchase and special dividend announcements on the share price of JSE listed companies for the period 1999-2015. On the announcement day of share repurchases negative average abnormal returns of 0.108% were observed. The market delayed by a day to react to the share repurchase announcement as abnormal returns of 0.439% were observed on the 1st day after the announcement. Positive abnormal returns of 1.213% were observed on the announcement day of special dividends. Average positive abnormal returns of 0.154% were observed 25 days before the announcement. Negative abnormal returns of 0.202% were observed on average 25 days after the announcement. The results for share repurchases and special dividends were tested for significance at 95% confidence level and were found to be insignificant.
M.Com. (Finance)