Tid: 13 september 2004 kl 1515-1700

Plats : Seminarierummet 3733, Institutionen för matematik, KTH, Lindstedts väg 25, plan 7. Karta!

Föredragshållare: Adri de Ridder, Matematisk statistik, KTH.

Titel: Long-run abnormal share-price performance and share repurchases. Evidence from Sweden.

Sammanfattning: In this study I examine long-run share price performance and share repurchases in Sweden during the period 2000 to June 2004. New legislation in Sweden, with effect as of March year 2000, together with full disclosure of details about the repurchase programmes, i.e. actual execution dates, size, and price paid for the repurchased shares, provides new empirical insights about long term valuation effects of share repurchases. In the analysis I use several methods to quantify long-run price performance. My findings can be summarized as follows. Despite a short period, almost 70 Swedish firms have embarked share repurchase programmes, and the value of the programmes during the first four years is roughly 110 bn Skr (15 billion US-dollar). I find that firms with repurchases outperformed both the overall return on the market and a matched firm by market size. The mean 3-year holding period return is substantial and varies between 23.62 % (raw returns) and 69.02 % (market adjusted). Furthermore, the average 3-year holding period return (raw returns) is larger for small market cap firms compared to large firms, 34.71 % and 13.01 % respectively. The results suggest several avenues for further analysis. First, the firms characteristics merit further investigation. Second, compared to previous studies of repurchases, the magnitude with Swedish empirical data is intriguing and calls for further analysis of the framework for share repurchases.

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