Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid

This study identifies the underlying constructs of the motivating factors of share buyback decisions of Malaysian companies to share buybacks from 1999 to 2005. This study employs factor analysis to seek variables (indicators) on the factors and conform to what are the underlying motivations for...

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Main Author:	Dol, Akma Hidayu
Format:	Thesis
Language:	English
Published:	2006
Subjects:	Malaysia
Online Access:	https://ir.uitm.edu.my/id/eprint/2638/1/TM_AKMA%20HIDAYU%20DOL%40ABDUL%20WAHID%20AC%2006_5%201.pdf
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id	my-uitm-ir.2638
record_format	uketd_dc
spelling	my-uitm-ir.26382016-07-05T04:20:42Z Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid 2006 Dol, Akma Hidayu Malaysia This study identifies the underlying constructs of the motivating factors of share buyback decisions of Malaysian companies to share buybacks from 1999 to 2005. This study employs factor analysis to seek variables (indicators) on the factors and conform to what are the underlying motivations for companies to buyback shares. The indicator variables are selected on the basis of prior literature and factor analysis is used to see if these variables are the underlying constructs that motivate companies to exercise share buyback. This study reveals indicator variables like return on equity (ROE), earning per shares (EPS), return on assets (ROA) and market to book value of equity (MB) are the underlying constructs for improvement in the operating performance of the buyback companies. This study also reveals that intangible assets (INTANG), capital expenditures (CAPEXP) and sales (SALES) are the underlying constructs for undervaluation of companies' share prices. The results suggest that share buybacks merely a result of decrease in the denominator i.e. numbers of outstanding shares and intangible assets are source of undervaluation of the companies' share prices which is consistent to results of the prior studies. This suggests that companies' potential earnings are merely generated from intangibles. As a result, investors must interpret the earnings with caution focusing on the potential earnings of a buyback company. 2006 Thesis https://ir.uitm.edu.my/id/eprint/2638/ https://ir.uitm.edu.my/id/eprint/2638/1/TM_AKMA%20HIDAYU%20DOL%40ABDUL%20WAHID%20AC%2006_5%201.pdf text en public masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Malaysia
spellingShingle	Malaysia Dol, Akma Hidayu Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid
description	This study identifies the underlying constructs of the motivating factors of share buyback decisions of Malaysian companies to share buybacks from 1999 to 2005. This study employs factor analysis to seek variables (indicators) on the factors and conform to what are the underlying motivations for companies to buyback shares. The indicator variables are selected on the basis of prior literature and factor analysis is used to see if these variables are the underlying constructs that motivate companies to exercise share buyback. This study reveals indicator variables like return on equity (ROE), earning per shares (EPS), return on assets (ROA) and market to book value of equity (MB) are the underlying constructs for improvement in the operating performance of the buyback companies. This study also reveals that intangible assets (INTANG), capital expenditures (CAPEXP) and sales (SALES) are the underlying constructs for undervaluation of companies' share prices. The results suggest that share buybacks merely a result of decrease in the denominator i.e. numbers of outstanding shares and intangible assets are source of undervaluation of the companies' share prices which is consistent to results of the prior studies. This suggests that companies' potential earnings are merely generated from intangibles. As a result, investors must interpret the earnings with caution focusing on the potential earnings of a buyback company.
format	Thesis
qualification_level	Master's degree
author	Dol, Akma Hidayu
author_facet	Dol, Akma Hidayu
author_sort	Dol, Akma Hidayu
title	Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid
title_short	Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid
title_full	Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid
title_fullStr	Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid
title_full_unstemmed	Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid
title_sort	factors that motivate share buybacks : evidence from the malaysian listed companies / akma hidayu dol@abdul wahid
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2006
url	https://ir.uitm.edu.my/id/eprint/2638/1/TM_AKMA%20HIDAYU%20DOL%40ABDUL%20WAHID%20AC%2006_5%201.pdf
_version_	1783733083685519360

Factors that motivate share buybacks : evidence from the Malaysian Listed Companies / Akma Hidayu Dol@Abdul Wahid

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