Subject The research examines buyback transactions as a tool of the corporate financial policy. Objectives The research reviews the efficiency of repurchase programs so to increase corporate capitalization. When the company announces about a repurchase program for buying its own shares back, it has a positive effect on changes in quotations. The hypothesis was tested during the crisis and relatively stable situation in the stock market. Methods I examined how the company's announcement about the buyback transaction would influence quotations for shares, using a sample of 30 Russian companies, which had closed repurchase deals from 2006 through 2016. I applied the event study method. Conclusions and Relevance The findings verify that buyback programs are effective, increasing the corporate capitalization. However, this direction should not be a single mechanism, since it has a short-term effect only and deteriorates a dropping trend. In crises, it would be more reasonable to repurchase own shares.
Keywords: repurchase, shares, excess return, event study
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