Aktieåterköps påverkan på avkastning: En empirisk studie av återköp genomförda på Nasdaq Stockholm
(2025) NEKH02 20242Department of Economics
- Abstract
- The number of listed companies that decide to buy back their own shares has increased significantly in Sweden in recent years.
This paper examines whether buybacks of companies listed on Nasdaq Stockholm have resulted in abnormal returns for the companies' shares. The study covers buybacks carried out during the period 2015 to 2024. The return is measured as the cumulative return from the day before the first buyback in a programme, and three and twelve months thereafter.
The buy and hold abnormal return (BHAR) methodology is used to measure the abnormal return, comparing the return from a buy and hold strategy with the return from a benchmark portfolio over the same period. The study's hypotheses are based, among other things, on... (More) - The number of listed companies that decide to buy back their own shares has increased significantly in Sweden in recent years.
This paper examines whether buybacks of companies listed on Nasdaq Stockholm have resulted in abnormal returns for the companies' shares. The study covers buybacks carried out during the period 2015 to 2024. The return is measured as the cumulative return from the day before the first buyback in a programme, and three and twelve months thereafter.
The buy and hold abnormal return (BHAR) methodology is used to measure the abnormal return, comparing the return from a buy and hold strategy with the return from a benchmark portfolio over the same period. The study's hypotheses are based, among other things, on signaling theory, which is based on the assumption of information asymmetry between management and shareholders - where management is assumed to have an information advantage.
The results show that, on average, the buybacks led to a negative abnormal return 12 months after the start of the programmes. A complementary analysis shows that factors such as industry affiliation, in some cases, and the specific year in which the buybacks were implemented had a significant impact on the outcome. At the same time, the results show a large dispersion across companies, and the explanatory power of the analyzed variables is limited. This suggests that the effect of buybacks is influenced by a combination of firm-specific conditions and external factors. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9187607
- author
- Hemb, Ebba LU
- supervisor
- organization
- course
- NEKH02 20242
- year
- 2025
- type
- M2 - Bachelor Degree
- subject
- keywords
- Buybacks, Stock returns, Abnormal returns, BHAR (Buy and Hold Abnormal Return), Stock index, Nasdaq Stockholm
- language
- Swedish
- id
- 9187607
- date added to LUP
- 2025-05-16 10:46:40
- date last changed
- 2025-05-16 10:46:40
@misc{9187607,
abstract = {{The number of listed companies that decide to buy back their own shares has increased significantly in Sweden in recent years.
This paper examines whether buybacks of companies listed on Nasdaq Stockholm have resulted in abnormal returns for the companies' shares. The study covers buybacks carried out during the period 2015 to 2024. The return is measured as the cumulative return from the day before the first buyback in a programme, and three and twelve months thereafter.
The buy and hold abnormal return (BHAR) methodology is used to measure the abnormal return, comparing the return from a buy and hold strategy with the return from a benchmark portfolio over the same period. The study's hypotheses are based, among other things, on signaling theory, which is based on the assumption of information asymmetry between management and shareholders - where management is assumed to have an information advantage.
The results show that, on average, the buybacks led to a negative abnormal return 12 months after the start of the programmes. A complementary analysis shows that factors such as industry affiliation, in some cases, and the specific year in which the buybacks were implemented had a significant impact on the outcome. At the same time, the results show a large dispersion across companies, and the explanatory power of the analyzed variables is limited. This suggests that the effect of buybacks is influenced by a combination of firm-specific conditions and external factors.}},
author = {{Hemb, Ebba}},
language = {{swe}},
note = {{Student Paper}},
title = {{Aktieåterköps påverkan på avkastning: En empirisk studie av återköp genomförda på Nasdaq Stockholm}},
year = {{2025}},
}