What Effects Do Realised Share Repurchases Have On Share Liquidity?
(2022) FEKH89 20212Department of Business Administration
- Abstract (Swedish)
- Title: What Effects Do Realised Share Repurchases Have on Share Liquidity?
Seminar date: 14th of January 2021.
Course: FEKH89, Degree Project Undergraduate level, Business Administration - Corporate Finance. 15 ECTS.
Authors: Maximilian Holmberg, Amanda Melin, and Marcus von Schéele.
Supervisor: Göran Anderson.
Key words: Share liquidity, share repurchases, Russell 3000 Index, U.S Stock market, bid-ask spread.
Research question: What is the relationship between realised share repurchases and liquidity on the U.S. stock market?
Purpose: The thesis examines the relationship between realised open market share repurchases and share liquidity on the U.S stock market.
Methodology: Four separate liquidity measurements are... (More) - Title: What Effects Do Realised Share Repurchases Have on Share Liquidity?
Seminar date: 14th of January 2021.
Course: FEKH89, Degree Project Undergraduate level, Business Administration - Corporate Finance. 15 ECTS.
Authors: Maximilian Holmberg, Amanda Melin, and Marcus von Schéele.
Supervisor: Göran Anderson.
Key words: Share liquidity, share repurchases, Russell 3000 Index, U.S Stock market, bid-ask spread.
Research question: What is the relationship between realised share repurchases and liquidity on the U.S. stock market?
Purpose: The thesis examines the relationship between realised open market share repurchases and share liquidity on the U.S stock market.
Methodology: Four separate liquidity measurements are tested using multiple regression analysis to answer the hypothesis and research question. The sample consists of 3028 firms, 1567 of which conducted at least one quarterly share repurchase within the time frame of 2016-09-30 through 2021-09-30, yielding a combined amount of 17 961 share repurchase observations.
Theoretical perspectives: The thesis is built upon a number of previous studies and two theories with the intention of explaining the relationship between realised share repurchases and share liquidity. The previous studies section is divided into groups of potentially influencing factors, to aid interpretation of the results.
Result: The empirical evidence finds no statistically significant effect on share liquidity in either direction following a realised quarterly share repurchase and thus can not reject the null hypothesis.
Conclusion: The study concludes share repurchases do neither increase nor decrease share liquidity. We test the results against previous studies and position it among the studies concluding share repurchases have no effect on share liquidity. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9076637
- author
- von Schéele, Marcus LU ; Holmberg, Maximilian and Melin, Amanda
- supervisor
- organization
- course
- FEKH89 20212
- year
- 2022
- type
- M2 - Bachelor Degree
- subject
- language
- English
- id
- 9076637
- date added to LUP
- 2022-03-24 13:37:26
- date last changed
- 2022-03-24 13:37:26
@misc{9076637,
abstract = {{Title: What Effects Do Realised Share Repurchases Have on Share Liquidity?
Seminar date: 14th of January 2021.
Course: FEKH89, Degree Project Undergraduate level, Business Administration - Corporate Finance. 15 ECTS.
Authors: Maximilian Holmberg, Amanda Melin, and Marcus von Schéele.
Supervisor: Göran Anderson.
Key words: Share liquidity, share repurchases, Russell 3000 Index, U.S Stock market, bid-ask spread.
Research question: What is the relationship between realised share repurchases and liquidity on the U.S. stock market?
Purpose: The thesis examines the relationship between realised open market share repurchases and share liquidity on the U.S stock market.
Methodology: Four separate liquidity measurements are tested using multiple regression analysis to answer the hypothesis and research question. The sample consists of 3028 firms, 1567 of which conducted at least one quarterly share repurchase within the time frame of 2016-09-30 through 2021-09-30, yielding a combined amount of 17 961 share repurchase observations.
Theoretical perspectives: The thesis is built upon a number of previous studies and two theories with the intention of explaining the relationship between realised share repurchases and share liquidity. The previous studies section is divided into groups of potentially influencing factors, to aid interpretation of the results.
Result: The empirical evidence finds no statistically significant effect on share liquidity in either direction following a realised quarterly share repurchase and thus can not reject the null hypothesis.
Conclusion: The study concludes share repurchases do neither increase nor decrease share liquidity. We test the results against previous studies and position it among the studies concluding share repurchases have no effect on share liquidity.}},
author = {{von Schéele, Marcus and Holmberg, Maximilian and Melin, Amanda}},
language = {{eng}},
note = {{Student Paper}},
title = {{What Effects Do Realised Share Repurchases Have On Share Liquidity?}},
year = {{2022}},
}