Demirag, I, Kungwal, T ORCID: https://orcid.org/0000-0001-7481-948X and Bakkar, Y (2022) Assessing the impact of market logic and long-term strategic plans of top management in share buyback decisions. Managerial Finance, 48 (3). 392 - 408.

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Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>This paper investigates stakeholders' perspectives of share buybacks in the context of time-horizons of investment decisions and strategy.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>We use in-depth interviews with stakeholders from eight listed UK firms as well as examine their publicly available data.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>Findings suggest that share buybacks involve a wide range of stakeholders' rational interests and long-term management perspectives as they enable firms to strategise operational plans towards their long-term corporate goals.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Research limitations/implications</jats:title><jats:p>The findings are based on interviews with a small number of share buyback firms and the findings, therefore, may not be generalised to all firms.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Practical implications</jats:title><jats:p>The results show that share buybacks may be part of the long-term interests of firms and not necessarily used as part of short-term EPS increases as suggested in the extant literature.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>The findings contribute to the literature on corporate pay-out policies in the context of short-term financial objectives vs long-term strategic objectives of stakeholders. They show that share buybacks can be an important part of firms' long-term strategic considerations.</jats:p></jats:sec>

Item Type: Article
Additional Information: The final version of this article and all relevant information related to it, including copyrights, can be found on the publisher website at; https://www.emerald.com/insight/content/doi/10.1108/MF-07-2021-0336/full/html
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: Faculty of Humanities and Social Sciences > Keele Business School
Depositing User: Symplectic
Date Deposited: 25 Feb 2022 10:27
Last Modified: 25 Feb 2022 10:27
URI: https://eprints.keele.ac.uk/id/eprint/10653

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