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Determinants of share repurchase size: Evidence from Sweden

Luu Thi Van, Anh LU and Zheng, Jin LU (2025) NEKN02 20251
Department of Economics
Abstract
This thesis investigates the determinants of share repurchase size among Swedish listed firms, focusing on how firm characteristics and ownership structures influence buyback behavior. Using panel data from 2014 to 2024 and applying Tobit regression models, the study finds that firm size has a consistently positive but diminishing effect on repurchase size. Our model incorporates firm-level financial variables and ownership structure, and examines both linear and non-linear effects on repurchase intensity. The findings reveal that excess cash flows and firm size are significant drivers of repurchase size, with evidence of non-linear relationships. In contrast, traditional determinants such as firm valuation, leverage, and dividend payouts... (More)
This thesis investigates the determinants of share repurchase size among Swedish listed firms, focusing on how firm characteristics and ownership structures influence buyback behavior. Using panel data from 2014 to 2024 and applying Tobit regression models, the study finds that firm size has a consistently positive but diminishing effect on repurchase size. Our model incorporates firm-level financial variables and ownership structure, and examines both linear and non-linear effects on repurchase intensity. The findings reveal that excess cash flows and firm size are significant drivers of repurchase size, with evidence of non-linear relationships. In contrast, traditional determinants such as firm valuation, leverage, and dividend payouts show weaker or inconsistent effects. Notably, insider and institutional ownership exhibit negative associations with repurchase size, challenging conventional agency theory predictions. Robustness checks using OLS with fixed effects confirm the stability of these effects, while highlighting the sensitivity of cash and ownership influences to firm-specific traits. These results underscore the context-specific nature of repurchase behavior and suggest that governance structures play a critical role in shaping capital distribution strategies. (Less)
Please use this url to cite or link to this publication:
author
Luu Thi Van, Anh LU and Zheng, Jin LU
supervisor
organization
course
NEKN02 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
Share repurchase, Repurchase size, Sweden, Determinants, Non-linearity
language
English
id
9194335
date added to LUP
2025-09-12 10:42:46
date last changed
2025-09-12 10:42:46
@misc{9194335,
  abstract     = {{This thesis investigates the determinants of share repurchase size among Swedish listed firms, focusing on how firm characteristics and ownership structures influence buyback behavior. Using panel data from 2014 to 2024 and applying Tobit regression models, the study finds that firm size has a consistently positive but diminishing effect on repurchase size. Our model incorporates firm-level financial variables and ownership structure, and examines both linear and non-linear effects on repurchase intensity. The findings reveal that excess cash flows and firm size are significant drivers of repurchase size, with evidence of non-linear relationships. In contrast, traditional determinants such as firm valuation, leverage, and dividend payouts show weaker or inconsistent effects. Notably, insider and institutional ownership exhibit negative associations with repurchase size, challenging conventional agency theory predictions. Robustness checks using OLS with fixed effects confirm the stability of these effects, while highlighting the sensitivity of cash and ownership influences to firm-specific traits. These results underscore the context-specific nature of repurchase behavior and suggest that governance structures play a critical role in shaping capital distribution strategies.}},
  author       = {{Luu Thi Van, Anh and Zheng, Jin}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Determinants of share repurchase size: Evidence from Sweden}},
  year         = {{2025}},
}