Abstract
Do announcement returns in buybacks vary across industrial sectors? Which industrial sectors participate in buyback announcements? These are questions which elude exact answers. The action and reaction among competitive firms may be a reason as to why there could be more clustering of buyback decisions in some sectors than in others.
The present research attempts to find inter-sectoral announcement returns for buybacks in India. Using data from SEBI's Status Report on Buybacks in India and share price information from Bombay Stock Exchange (BSE) and CMIE sources, computation of ratio of market performance to buyback announcement has been done using standard event market model approach. An attempt has been made to understand market performance of share repurchases in India through inter-sectoral analysis.
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