Earnings management through accretive share buyback and share price return
This study examines the relationship between earnings management through accretive share buyback and share price return of 220 Malaysian listed firms from year 2001 to 2008.The objective of this study is to determine the market behavior on those firms that made good earnings news announcement throug...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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2015
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| Online Access: | https://repo.uum.edu.my/id/eprint/16180/1/85.pdf |
| _version_ | 1825803661283950592 |
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| author | Chandren, Sitraselvi Ahmad, Zamri Ali, Ruhani |
| author_facet | Chandren, Sitraselvi Ahmad, Zamri Ali, Ruhani |
| author_sort | Chandren, Sitraselvi |
| collection | UUM |
| description | This study examines the relationship between earnings management through accretive share buyback and share price return of 220 Malaysian listed firms from year 2001 to 2008.The objective of this study is to determine the market behavior on those firms that made good earnings news announcement through accretive share buyback.The
5 days Cumulative Abnormal Return (CAR) result shows that these firms earn positive share price return immediately after the earnings announcement day.Further, the regression result reports on the existence of positive effect of accretive share buyback on share price return.Basically, firms which announce good earnings news by meeting or beating EPS forecast through accretive share buyback earn positive share price return. In sum,
investors reward firms that made positive earnings surprises or good earnings news. The good earnings news announcement is a challenge for firms in the capital market for a positive financial health and future prospect.Earnings management through accretive share buyback plays a role to achieve the good earnings news.This paper contributes on the market behavior or investors reaction on firms that deliver good earnings news through accretive
share buyback. |
| first_indexed | 2024-07-04T06:00:46Z |
| format | Article |
| id | uum-16180 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:00:46Z |
| publishDate | 2015 |
| record_format | eprints |
| spelling | uum-161802016-04-12T08:22:53Z https://repo.uum.edu.my/id/eprint/16180/ Earnings management through accretive share buyback and share price return Chandren, Sitraselvi Ahmad, Zamri Ali, Ruhani HG Finance This study examines the relationship between earnings management through accretive share buyback and share price return of 220 Malaysian listed firms from year 2001 to 2008.The objective of this study is to determine the market behavior on those firms that made good earnings news announcement through accretive share buyback.The 5 days Cumulative Abnormal Return (CAR) result shows that these firms earn positive share price return immediately after the earnings announcement day.Further, the regression result reports on the existence of positive effect of accretive share buyback on share price return.Basically, firms which announce good earnings news by meeting or beating EPS forecast through accretive share buyback earn positive share price return. In sum, investors reward firms that made positive earnings surprises or good earnings news. The good earnings news announcement is a challenge for firms in the capital market for a positive financial health and future prospect.Earnings management through accretive share buyback plays a role to achieve the good earnings news.This paper contributes on the market behavior or investors reaction on firms that deliver good earnings news through accretive share buyback. 2015 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/16180/1/85.pdf Chandren, Sitraselvi and Ahmad, Zamri and Ali, Ruhani (2015) Earnings management through accretive share buyback and share price return. International Journal of Advances in Management and Economics, 4 (2). pp. 68-73. ISSN 2278-3369 http://www.managementjournal.info/view_archive.php?archiveid=21 |
| spellingShingle | HG Finance Chandren, Sitraselvi Ahmad, Zamri Ali, Ruhani Earnings management through accretive share buyback and share price return |
| title | Earnings management through accretive share buyback and share price return |
| title_full | Earnings management through accretive share buyback and share price return |
| title_fullStr | Earnings management through accretive share buyback and share price return |
| title_full_unstemmed | Earnings management through accretive share buyback and share price return |
| title_short | Earnings management through accretive share buyback and share price return |
| title_sort | earnings management through accretive share buyback and share price return |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/16180/1/85.pdf |
| work_keys_str_mv | AT chandrensitraselvi earningsmanagementthroughaccretivesharebuybackandsharepricereturn AT ahmadzamri earningsmanagementthroughaccretivesharebuybackandsharepricereturn AT aliruhani earningsmanagementthroughaccretivesharebuybackandsharepricereturn |