Effect of different types of buyback on immediate stock returns in a cross-country comparison post-COVID-19 pandemic
(2025) BUSN79 20251Department of Business Administration
- Abstract
- Purpose: To examine how various share buyback types affect the immediate stock returns of
financial institutions in a cross-country comparison following the COVID-19 pandemic.
Methodology: Panel data regression with fixed and random effects models, analyzing stock
returns on announcement dates. Control variables include buyback value, market capitalization, and leverage ratio.
Theoretical perspectives: Framework incorporating Signaling Theory, Agency Theory, and
Efficient Market Hypothesis, contextualized within post-pandemic economic conditions affecting financial institutions.
Empirical foundation: Analysis of 184 buyback announcements (122 UK, 31 Norway) from
2021-2024, sourced from S&P Capital IQ Pro, with transformations... (More) - Purpose: To examine how various share buyback types affect the immediate stock returns of
financial institutions in a cross-country comparison following the COVID-19 pandemic.
Methodology: Panel data regression with fixed and random effects models, analyzing stock
returns on announcement dates. Control variables include buyback value, market capitalization, and leverage ratio.
Theoretical perspectives: Framework incorporating Signaling Theory, Agency Theory, and
Efficient Market Hypothesis, contextualized within post-pandemic economic conditions affecting financial institutions.
Empirical foundation: Analysis of 184 buyback announcements (122 UK, 31 Norway) from
2021-2024, sourced from S&P Capital IQ Pro, with transformations applied to address statistical issues.
Conclusions: Open market repurchases yield positive stock returns in both the UK and
Norwegian financial institutions post-COVID-19, while other buyback types produce mixed
market reactions. Tender offers produce negative returns in the UK yet insignificant responses in Norway, demonstrating the context-dependent nature of market signaling across different economic frameworks. These findings underscore the imperative for financial managers to consider country-specific market dynamics when implementing capital allocation strategies in post-crisis environments. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9211833
- author
- Chaniotakis, Georgios LU and Nordström, Niko LU
- supervisor
- organization
- course
- BUSN79 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Share Buybacks, Stock Returns, Financial Institutions, COVID-19, Cross-Country Analysis
- language
- English
- id
- 9211833
- date added to LUP
- 2025-09-10 11:31:29
- date last changed
- 2025-09-10 11:31:29
@misc{9211833,
abstract = {{Purpose: To examine how various share buyback types affect the immediate stock returns of
financial institutions in a cross-country comparison following the COVID-19 pandemic.
Methodology: Panel data regression with fixed and random effects models, analyzing stock
returns on announcement dates. Control variables include buyback value, market capitalization, and leverage ratio.
Theoretical perspectives: Framework incorporating Signaling Theory, Agency Theory, and
Efficient Market Hypothesis, contextualized within post-pandemic economic conditions affecting financial institutions.
Empirical foundation: Analysis of 184 buyback announcements (122 UK, 31 Norway) from
2021-2024, sourced from S&P Capital IQ Pro, with transformations applied to address statistical issues.
Conclusions: Open market repurchases yield positive stock returns in both the UK and
Norwegian financial institutions post-COVID-19, while other buyback types produce mixed
market reactions. Tender offers produce negative returns in the UK yet insignificant responses in Norway, demonstrating the context-dependent nature of market signaling across different economic frameworks. These findings underscore the imperative for financial managers to consider country-specific market dynamics when implementing capital allocation strategies in post-crisis environments.}},
author = {{Chaniotakis, Georgios and Nordström, Niko}},
language = {{eng}},
note = {{Student Paper}},
title = {{Effect of different types of buyback on immediate stock returns in a cross-country comparison post-COVID-19 pandemic}},
year = {{2025}},
}