Istemi Demirag
Assessing the impact of market logic and long-term strategic plans of top management in share buyback decisions
Demirag, Istemi; Kungwal, Thanamas; Bakkar, Yassine
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>
Journal Article Type | Article |
---|---|
Acceptance Date | Nov 12, 2021 |
Publication Date | Feb 15, 2022 |
Journal | Managerial Finance |
Print ISSN | 0307-4358 |
Publisher | Emerald |
Peer Reviewed | Peer Reviewed |
Volume | 48 |
Issue | 3 |
Pages | 392 - 408 |
DOI | https://doi.org/10.1108/mf-07-2021-0336 |
Publisher URL | https://www.emerald.com/insight/content/doi/10.1108/MF-07-2021-0336/full/html |
Files
Tables.docx
(18 Kb)
Document
Publisher Licence URL
https://creativecommons.org/licenses/by-nc/4.0/
Figure.docx
(48 Kb)
Document
Publisher Licence URL
https://creativecommons.org/licenses/by-nc/4.0/
Main Text_Cleaned Version.docx
(117 Kb)
Document
Publisher Licence URL
https://creativecommons.org/licenses/by-nc/4.0/
You might also like
Why Do UK Firms Repurchase Their Own Shares?
(2022)
Journal Article
Why Do UK Firms Repurchase Their Own Shares?
(2022)
Journal Article
On Empirically Capturing 'Other Information'
(-0001)
Journal Article
Downloadable Citations
About Keele Repository
Administrator e-mail: research.openaccess@keele.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search