Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006
Autor(a) principal: | |
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Data de Publicação: | 2010 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | BBR. Brazilian Business Review (English edition. Online) |
Texto Completo: | http://www.bbronline.com.br/index.php/bbr/article/view/346 |
Resumo: | This study examines whether there is a relation between stock repurchase announcements and abnormal returns of companies classified as winners and losers. The classification as winners or losers followed the method suggested by Piotroski (2000), as adapted to the Brazilian market by Lopes & Galdi (2007). The data were obtained from the Economática database, referring to companies listed on the São Paulo Stock Exchange (Bovespa) in the period from 1994 to 2006. The hypotheses were tested through regression with panel data. The results show no abnormal returns for both winners and losers that announced share repurchases in the entire study period, without specifying whether this was before or after issuance in 1999 of Instruction 299 by the Brazilian Securities Commission (CVM), which enhanced protection of minority shareholders in public tender offers. After segregating the study period into two sub-periods, before and after the new rules, we found a negative relation with abnormal returns for losers that announced repurchases in the earlier period (1994 to 1999), while there was no statistically significant relation for winners. For the 2000-2006 period, however, there was a positive relation with abnormal returns for both winners and losers. |
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Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006A Recompra de ações e a análise fundamentalista: um estudo empírico na Bovespa no período de 1994 a 2006Stock repurchasewinners, loserscompany valuationstock portfoliosRecompra de açõesempresas winnersempresas losersavaliação de empresasportfolio de açõesThis study examines whether there is a relation between stock repurchase announcements and abnormal returns of companies classified as winners and losers. The classification as winners or losers followed the method suggested by Piotroski (2000), as adapted to the Brazilian market by Lopes & Galdi (2007). The data were obtained from the Economática database, referring to companies listed on the São Paulo Stock Exchange (Bovespa) in the period from 1994 to 2006. The hypotheses were tested through regression with panel data. The results show no abnormal returns for both winners and losers that announced share repurchases in the entire study period, without specifying whether this was before or after issuance in 1999 of Instruction 299 by the Brazilian Securities Commission (CVM), which enhanced protection of minority shareholders in public tender offers. After segregating the study period into two sub-periods, before and after the new rules, we found a negative relation with abnormal returns for losers that announced repurchases in the earlier period (1994 to 1999), while there was no statistically significant relation for winners. For the 2000-2006 period, however, there was a positive relation with abnormal returns for both winners and losers.Este estudo objetiva verificar se existe relação entre o anúncio de recompra de ações por empresas winners ou empresas losers e o retorno anormal. A classificação das empresas em winners e losers segue a metodologia proposta por Piotroski (2000) e adaptado ao mercado brasileiro por Lopes e Galdi (2007). Os dados utilizados foram obtidos na base de dados Economática. Os dados se referem às empresas listadas na Bovespa no período de 1994 a 2006. O teste das hipóteses foi realizado por meio da análise de regressão com dados em painel. Verificou-se que tanto as empresas winners quanto as empresas losers, que anunciaram a recompra de ações no período de 1994 a 2006, não têm relação com o retorno anormal, sem especificar o período antes e após a Instrução CVM 299/1999. Ao segregar o período em antes e após a Instrução CVM 299/1999, há relação negativa entre as empresas losers que anunciaram a recompra de ações no período de 1994 a 1999, enquanto as empresas winners não têm relação estatisticamente significante com o retorno anormal. Verificou-se também que tanto as empresas winners quanto as empresas losers, que anunciaram a recompra de ações no período de 2000 a 2006, têm relação positiva com o retorno anormal.FUCAPE Business Shool2010-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/34610.15728/bbr.2010.7.1.1Brazilian Business Review; Vol. 7 No. 1 (2010): January to April 2010; 1-22Brazilian Business Review; v. 7 n. 1 (2010): Janeiro a Abril de 2010; 1-221808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/346/523http://www.bbronline.com.br/index.php/bbr/article/view/346/524Nossa, Silvania NerisLopes, Alexsandro BroedelTeixeira, Aridelmoinfo:eu-repo/semantics/openAccess2018-11-06T19:57:32Zoai:ojs.pkp.sfu.ca:article/346Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-11-06T19:57:32BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false |
dc.title.none.fl_str_mv |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 A Recompra de ações e a análise fundamentalista: um estudo empírico na Bovespa no período de 1994 a 2006 |
title |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 |
spellingShingle |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 Nossa, Silvania Neris Stock repurchase winners, losers company valuation stock portfolios Recompra de ações empresas winners empresas losers avaliação de empresas portfolio de ações |
title_short |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 |
title_full |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 |
title_fullStr |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 |
title_full_unstemmed |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 |
title_sort |
Stock repurchases and fundamental analysis: an empirical study of the brazilian market in the period from 1994 to 2006 |
author |
Nossa, Silvania Neris |
author_facet |
Nossa, Silvania Neris Lopes, Alexsandro Broedel Teixeira, Aridelmo |
author_role |
author |
author2 |
Lopes, Alexsandro Broedel Teixeira, Aridelmo |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Nossa, Silvania Neris Lopes, Alexsandro Broedel Teixeira, Aridelmo |
dc.subject.por.fl_str_mv |
Stock repurchase winners, losers company valuation stock portfolios Recompra de ações empresas winners empresas losers avaliação de empresas portfolio de ações |
topic |
Stock repurchase winners, losers company valuation stock portfolios Recompra de ações empresas winners empresas losers avaliação de empresas portfolio de ações |
description |
This study examines whether there is a relation between stock repurchase announcements and abnormal returns of companies classified as winners and losers. The classification as winners or losers followed the method suggested by Piotroski (2000), as adapted to the Brazilian market by Lopes & Galdi (2007). The data were obtained from the Economática database, referring to companies listed on the São Paulo Stock Exchange (Bovespa) in the period from 1994 to 2006. The hypotheses were tested through regression with panel data. The results show no abnormal returns for both winners and losers that announced share repurchases in the entire study period, without specifying whether this was before or after issuance in 1999 of Instruction 299 by the Brazilian Securities Commission (CVM), which enhanced protection of minority shareholders in public tender offers. After segregating the study period into two sub-periods, before and after the new rules, we found a negative relation with abnormal returns for losers that announced repurchases in the earlier period (1994 to 1999), while there was no statistically significant relation for winners. For the 2000-2006 period, however, there was a positive relation with abnormal returns for both winners and losers. |
publishDate |
2010 |
dc.date.none.fl_str_mv |
2010-01-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artigo revisado pelos pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/346 10.15728/bbr.2010.7.1.1 |
url |
http://www.bbronline.com.br/index.php/bbr/article/view/346 |
identifier_str_mv |
10.15728/bbr.2010.7.1.1 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/346/523 http://www.bbronline.com.br/index.php/bbr/article/view/346/524 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FUCAPE Business Shool |
publisher.none.fl_str_mv |
FUCAPE Business Shool |
dc.source.none.fl_str_mv |
Brazilian Business Review; Vol. 7 No. 1 (2010): January to April 2010; 1-22 Brazilian Business Review; v. 7 n. 1 (2010): Janeiro a Abril de 2010; 1-22 1808-2386 1807-734X reponame:BBR. Brazilian Business Review (English edition. Online) instname:Fucape Business School (FBS) instacron:FBS |
instname_str |
Fucape Business School (FBS) |
instacron_str |
FBS |
institution |
FBS |
reponame_str |
BBR. Brazilian Business Review (English edition. Online) |
collection |
BBR. Brazilian Business Review (English edition. Online) |
repository.name.fl_str_mv |
BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS) |
repository.mail.fl_str_mv |
|| bbronline@bbronline.com.br |
_version_ |
1754732238469070848 |