Short-Term Price Effects of Stock Repurchases in Turkish Capital Markets

2015 ◽  
Author(s):  
Burak Pirgaip ◽  
Semra Karacaer
Keyword(s):  
Capital Markets ◽  
Stock Repurchases ◽  
Short Term ◽  
Price Effects

scholarly journals Short-Term Price Effects of Stock Repurchases in Turkish Capital Markets

2015 ◽  
Vol 7 (12) ◽  
pp. 29 ◽  
Author(s):  
Burak Pirgaip ◽  
Semra Karacaer
Keyword(s):  
Capital Markets ◽  
Stock Prices ◽  
Company Law ◽  
Stock Repurchases ◽  
Open Market ◽  
Short Term ◽  
Stock Repurchase ◽  
Listed Firms ◽  
Commercial Code ◽  
Signaling Hypothesis

Stock repurchase, as a corporate finance tool and a substitute for cash dividends, plays an important role in distributing excess cash. Following a prohibited period due to its potentially negative outcomes for shareholders and creditors, stock repurchase has recently been regulated within the company law systems of many countries pursuant to its increasing popularity in satisfying special financing requirements of companies. That the regulatory improvements have removed the uncertainty inherent in such transactions has increased the volume of, especially, the open market stock repurchases. Turkish legislation, <em>i.e.</em> <em>Commercial Code and Capital Markets Law</em>, has latterly been updated in accordance with EU acquis communautaire in order to allow stock repurchase for listed firms. We analyse movements in stock prices after stock repurchase transactions in order to make inferences about why stock repurchase is used and what its impacts/signals are in Turkish market at their infancy stage. Having followed a standard event study methodology, the results reveal that investor reaction to stock repurchase transactions is generally positive in the short-term. These results support the notion of a signaling hypothesis as a motivator behind stock repurchase decisions.

Riyadh will court investors for diversification

2018 ◽  
Keyword(s):  
Emerging Markets ◽  
Foreign Investment ◽  
Capital Markets ◽  
Business Environment ◽  
Short Term ◽  
Content Type ◽  
Vision 2030

Significance Mohammed bin Salman in 2016 spearheaded ‘Vision 2030’, a grand plan for a more diversified economy, accompanied by a step-by-step transformation programme. A key element is to attract financing by improving the business environment, reforming capital markets, privatising state-owned entities and facilitating foreign investment. Impacts If plans go well, new Saudi opportunities could divert investment flows away from more mature emerging markets such as Turkey and Malaysia. Although other Gulf markets might lose out in the short term, they will ultimately benefit if investors take more interest in the region. Failure of the privatisation drive would dent the crown prince’s reputation and undermine his spending plans.

Causes and Consequences of the Korean Financial Crisis

2000 ◽  
Vol 03 (01) ◽  
pp. 1-26 ◽  
Author(s):  
Dosoung Choi ◽  
Frank C. Jen ◽  
H. Han Shin
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Capital Markets ◽  
Business Sector ◽  
External Shocks ◽  
Business Risk ◽  
Short Term ◽  
The Past ◽  
Debt Capital

During the past decade, the profitability of Korean firms has declined significantly while their business risk has risen substantially. The deteriorating condition was largely due to excessive investments in manufacturing capacity that were financed mainly with short-term debt capital. The measures to restructure the system are summarized in two major thrusts: one, to reform corporate governance so that the business sector becomes more transparent and more value-enhancing; and two, to help develop long-term capital markets so that the domestic financial system becomes less vulnerable to external shocks.

Cross-Border M&A is followed by cross-border investor relations

2016 ◽  
Vol 32 (9) ◽  
pp. 4-6
Author(s):  
Arsia Amir-Aslani ◽  
Philippe Lê ◽  
Mark Anthony Chanel
Keyword(s):  
Capital Markets ◽  
Design Methodology ◽  
Strategic Communication ◽  
Investor Relations ◽  
Short Term ◽  
Content Type ◽  
Investor Confidence ◽  
Cross Border ◽  
Biotechnology Sector

Purpose This paper aims to highlight the growing role of strategic communication in cross-border M&A in helping companies meet market expectations and investor confidence. Design/methodology/approach Viewpoint. Findings When all of the elements about a corporation that can possibly be compiled and projected and understood by the financial community, then that company can expect to compete successfully in the capital markets. Originality/value Communicating the value of R&D programs and their short/term goals has not been extensively covered for the biotechnology sector.

Cheap oil will increase Middle East debt issuances

2016 ◽  
Keyword(s):  
Middle East ◽  
North Africa ◽  
Capital Markets ◽  
Banking Industry ◽  
Corporate Bonds ◽  
Investment Banking ◽  
Short Term ◽  
Investment Bank ◽  
Content Type ◽  
Financial Holding

Significance This, with his recently acquired Beltone Financial Holding SAE, will create Egypt's second largest investment bank. Yet the profitability of the Middle East and North Africa (MENA) for the investment banking industry is unlikely to rise in the short term. Impacts Demand for Middle East bonds in 2016 will decline compared to 2014 and the first half of 2015. Yields will increase and issue size will decline, particularly for the weaker Gulf economies, Bahrain and Oman. This will reduce investors' interest in corporate bonds, which will mean more companies may cancel issues. In North Africa, lacklustre capital markets will not see enough reform to generate a recovery there.

Short term real earnings management prior to stock repurchases

2017 ◽  
Vol 50 (1) ◽  
pp. 95-128 ◽  
Author(s):  
Lauren A. Cooper ◽  
Jimmy F. Downes ◽  
Ramesh P. Rao
Keyword(s):  
Earnings Management ◽  
Real Earnings Management ◽  
Stock Repurchases ◽  
Short Term
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