An Event Analysis of Open Market Share Repurchases in Malaysia

This research revolves around the need to understand the relationship between share repurchases and share price behaviour of companies listed on Bursa Malaysia on a more recent basis given the economic stability in Malaysia and throughout the world from 2006 to 2012. Started in the West, it reached maturity in the 1980s in the United States but it only began in Malaysia in the 1990's. The studies of share repurchase is still considered an infant in Malaysia. In Malaysia, as in other countries throughout the world, companies pursue share repurchases for a number of reasons mainly to signal undervaluation, reward shareholders, defend against takeover, utilize financial resources efficiently and many more motives that is interesting for researchers to look at. Unlike other studies which looks at announcement date, since announcement doesn't mean the companies will implement the transactions, This research is important since it looks and analyse at the actual effective repurchase day done by establish firms which are most important and crucial aspect in analyzing the consequences and the results in this study shows positive abnormal mean returns for most of the companies.