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Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)

This study aims to examine the predictive ability of share buybacks from an earnings perspective. Panel data regression analysis is conducted to determine the impact of share repurchases on future firm performance using Malaysian publicly listed companies data over 2000-2020. This study is signifi...

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Main Authors: Chin, Chee Ling, Mohamad, Jais, Salawati, Sahari, Chin, Chee Hua
Format: Article
Language:English
Published: Penerbit UKM, Universiti Kebangsaan Malaysia. 2023
Subjects:
HG Finance
Online Access:http://ir.unimas.my/id/eprint/44794/1/Information%20Content.pdf
http://ir.unimas.my/id/eprint/44794/
https://www.ukm.my/jem/article/information-content-of-share-buybacks-from-an-earnings-perspective/
http://dx.doi.org/10.17576/JEM-2023-5701-13
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spelling my.unimas.ir.447942024-05-20T01:41:22Z http://ir.unimas.my/id/eprint/44794/ Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan) Chin, Chee Ling Mohamad, Jais Salawati, Sahari Chin, Chee Hua HG Finance This study aims to examine the predictive ability of share buybacks from an earnings perspective. Panel data regression analysis is conducted to determine the impact of share repurchases on future firm performance using Malaysian publicly listed companies data over 2000-2020. This study is significant because of the importance of share buybacks to attract investors, especially during crisis periods. The results show that the share repurchase ratio is positively and significantly related to all the proxies for future firm performance, as represented by return on assets, return on equity, operating income, and funds from operations that are all measured in the following year of share buyback. The validity of the result is confirmed when tested with an alternative explanatory variable, while the sensitivity test shows that the signaling power of share repurchase is more apparent among share-repurchasing firms with small market capitalization. Overall, the findings support the information signaling hypothesis and suggest that share buybacks in Malaysia provide useful information about a company’s earnings prospects. Penerbit UKM, Universiti Kebangsaan Malaysia. 2023 Article PeerReviewed text en http://ir.unimas.my/id/eprint/44794/1/Information%20Content.pdf Chin, Chee Ling and Mohamad, Jais and Salawati, Sahari and Chin, Chee Hua (2023) Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan). Jurnal Ekonomi Malaysia, 57 (1). pp. 181-192. ISSN 2716-6058 https://www.ukm.my/jem/article/information-content-of-share-buybacks-from-an-earnings-perspective/ http://dx.doi.org/10.17576/JEM-2023-5701-13
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HG Finance
spellingShingle HG Finance
Chin, Chee Ling
Mohamad, Jais
Salawati, Sahari
Chin, Chee Hua
Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)
description This study aims to examine the predictive ability of share buybacks from an earnings perspective. Panel data regression analysis is conducted to determine the impact of share repurchases on future firm performance using Malaysian publicly listed companies data over 2000-2020. This study is significant because of the importance of share buybacks to attract investors, especially during crisis periods. The results show that the share repurchase ratio is positively and significantly related to all the proxies for future firm performance, as represented by return on assets, return on equity, operating income, and funds from operations that are all measured in the following year of share buyback. The validity of the result is confirmed when tested with an alternative explanatory variable, while the sensitivity test shows that the signaling power of share repurchase is more apparent among share-repurchasing firms with small market capitalization. Overall, the findings support the information signaling hypothesis and suggest that share buybacks in Malaysia provide useful information about a company’s earnings prospects.
format Article
author Chin, Chee Ling
Mohamad, Jais
Salawati, Sahari
Chin, Chee Hua
author_facet Chin, Chee Ling
Mohamad, Jais
Salawati, Sahari
Chin, Chee Hua
author_sort Chin, Chee Ling
title Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)
title_short Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)
title_full Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)
title_fullStr Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)
title_full_unstemmed Information Content of Share Buybacks from an Earnings Perspective = (Kandungan Maklumat Pembelian Semula Saham dari Perspektif Pendapatan)
title_sort information content of share buybacks from an earnings perspective = (kandungan maklumat pembelian semula saham dari perspektif pendapatan)
publisher Penerbit UKM, Universiti Kebangsaan Malaysia.
publishDate 2023
url http://ir.unimas.my/id/eprint/44794/1/Information%20Content.pdf
http://ir.unimas.my/id/eprint/44794/
https://www.ukm.my/jem/article/information-content-of-share-buybacks-from-an-earnings-perspective/
http://dx.doi.org/10.17576/JEM-2023-5701-13
_version_ 1800728140184551424
score 13.211869

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