Abstract:
This case study makes an attempt to analyze and interpret a number of issues like market reaction to stock buyback announcements, abnormal returns for different window periods, rationale of stock buybacks and benefits of stock buybacks to the shareholders. The buyback programs announced by the RIL from 1999 to 2012 have been considered for the study. The study found that the market reacted on an average positively to the buyback announcements of the RIL. The case study concludes that the company announced share buyback programs from time to time depending upon its requirement to signal the perceived underperforming shares in the market.
