Abstract

http://ssrn.com/abstract=2021670
 
 

References (19)



 
 

Footnotes (23)



 


 



On‐Market Share Buy‐Backs: ASX Disclosure Requirements and Compliance


Mark Holub


University of Western Australia - UWA Business School

Jason Mitchell


affiliation not provided to SSRN

March 2012

Abacus, Vol. 48, Issue 1, pp. 31-58, 2012

Abstract:     
Our paper investigates the compliance of Australian listed firms with the ASX disclosure rules for on‐market share buy‐backs. We find that firm compliance is reasonable for initial buy‐back announcements, but poor for final buy‐back notices. In the latter instance, the disclosure in the appropriate ASX notice is provided in only 53% of cases. Of significant concern is the even lower degree of final notice compliance (42%) for buy‐backs tagged as having ‘unlimited’ duration. Across our total sample of 807 buy‐backs, an alternative form of disclosure of buy‐back completion is provided in 25% of cases, and no proper notification of either the initial announcement or the completion of the buy‐back is provided in 12% of cases. In order to improve buy‐back transparency, some legislative reform of the ASX rules is suggested including: discontinuing ‘unlimited duration’ buy‐backs, restricting buy‐back periods to a maximum of twelve months (after which a new buy‐back process must be initiated), avoiding multiple simultaneous buy‐backs, removing the requirement of daily buy‐back notices in favour of more meaningful quarterly or monthly reports, and requiring greater disclosure in relation to foreign buy‐backs.

Number of Pages in PDF File: 28

Keywords: ASX announcements, Buy‐backs, Compliance, Information disclosure, Share repurchases

Accepted Paper Series





Date posted: March 14, 2012  

Suggested Citation

Holub, Mark and Mitchell, Jason, On‐Market Share Buy‐Backs: ASX Disclosure Requirements and Compliance (March 2012). Abacus, Vol. 48, Issue 1, pp. 31-58, 2012. Available at SSRN: http://ssrn.com/abstract=2021670 or http://dx.doi.org/10.1111/j.1467-6281.2012.00356.x

Contact Information

Mark Holub (Contact Author)
University of Western Australia - UWA Business School ( email )
35 Stirling Highway (M250)
Crawley WA 6009
Australia
+61 8 64882647 (Phone)
+61 8 64881047 (Fax)
Jason Mitchell
affiliation not provided to SSRN
Feedback to SSRN


Paper statistics
Abstract Views: 252
Downloads: 0
References:  19
Footnotes:  23

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.437 seconds