Market reaction to tender and private offers on the JSE

dc.contributor.authorWesson, N.
dc.contributor.authorMuller, C.
dc.contributor.authorWard, Michael
dc.date.accessioned2018-02-26T12:33:03Z
dc.date.available2018-02-26T12:33:03Z
dc.date.issued2017
dc.description.abstractInvestors can benefit when incorporating the information-signalling effect of share repurchases in their investment strategies. Previous South African studies on open market share repurchases confirmed the globally observed signalling-effect, but found open market share repurchases not to be the outright favoured share repurchase type in this country – as is the case globally. The present study is the first to examine the market reaction to the preferred share repurchase type, namely specific (or tender and private offers) share repurchases, in the South African regulatory environment. Abnormal returns were calculated using a 12-parameter benchmark over a four-year event window, for share repurchases announced from 1999 to 2009. Pro rata tender offers were found not to possess information-signalling benefits, but significant excess returns subsequent to the announcement date were reported for the two private offer types (namely other specific offers and the repurchase by the holding company of shares held by subsidiaries). The other specific offers were found to possess significant information-signalling benefits – especially over the long term and in respect of value companies.en_ZA
dc.description.departmentGordon Institute of Business Science (GIBS)en_ZA
dc.description.librarianam2018en_ZA
dc.description.urihttp://www.journals.co.za/content/journal/busmanen_ZA
dc.identifier.citationWesson, N., Muller, C. & Ward, M. 2017, 'Market reaction to tender and private offers on the JSE', South African Journal of Business Management, vol. 48, no. 4, pp. 1-11.en_ZA
dc.identifier.issn2078-5595 (print)
dc.identifier.issn2078-5976 (online)
dc.identifier.urihttp://hdl.handle.net/2263/64083
dc.language.isoenen_ZA
dc.publisherAssociation for Professional Managers in South Africaen_ZA
dc.rights© Association of Professional Management (APM)en_ZA
dc.subjectInvestorsen_ZA
dc.subjectMarketen_ZA
dc.subjectCompaniesen_ZA
dc.subjectInvestment strategiesen_ZA
dc.titleMarket reaction to tender and private offers on the JSEen_ZA
dc.typeArticleen_ZA

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