The Buyback Anomaly on the Polish Capital Market

Finanse, Rynki Finansowe, Ubezpieczenia nr 38/2011, pp. 481-494, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin 2011, ISSN 1640-6818, ISSN 1733-2842

15 Pages Posted: 29 Mar 2013 Last revised: 6 Nov 2013

See all articles by Adam Szyszka

Adam Szyszka

Warsaw School of Economics

Adam Zaremba

Poznań University of Economics and Business; Montpellier Business School

Date Written: March 27, 2011

Abstract

A number of studies carried on the US data found positive long-term excess returns following buybacks. The aim of this paper is to verify if a similar anomaly can be observed on the Polish market. We confirm the existence of long-term abnormal returns following buybacks and excess profitability of the buyback mimicking strategy (i.e. buying stocks after repurchase announcements). We discuss potential sources and present various interpretation of our evidence. Among others, we propose an alternative behavioral hypothesis for abnormal post-buyback returns. We show circumstances under which post-buyback outperformace might be also a result of managerial biases at the time of the repurchase and later temporal market overreaction in the post-buyback period.

Keywords: buyback, stock repurchase, event study, market efficiency, corporate behavioral finance

JEL Classification: G02, G14, G32, G35

Suggested Citation

Szyszka, Adam and Zaremba, Adam, The Buyback Anomaly on the Polish Capital Market (March 27, 2011). Finanse, Rynki Finansowe, Ubezpieczenia nr 38/2011, pp. 481-494, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin 2011, ISSN 1640-6818, ISSN 1733-2842, Available at SSRN: https://ssrn.com/abstract=2240303 or http://dx.doi.org/10.2139/ssrn.2240303

Adam Szyszka (Contact Author)

Warsaw School of Economics ( email )

Al. Niepodległości 164
Warszawa, 02-554
Poland

HOME PAGE: http://https://biogram.sgh.waw.pl/#/biogram/aszysz1

Adam Zaremba

Poznań University of Economics and Business ( email )

al. Niepodległości 10
Poznań, 61-875
Poland

HOME PAGE: http://adamzaremba.pl

Montpellier Business School ( email )

2300 Avenue des Moulins
Montpellier, Occitanie 34000
France

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