Title: Share repurchase: a review of the literature

Authors: Vedika Saxena; Seshadev Sahoo

Addresses: Indian Institute of Management Lucknow, Lucknow, UP, 226013, India ' Indian Institute of Management Lucknow, Lucknow, UP, 226013, India

Abstract: This study aims to synthesise and analyse the existing literature on share repurchases. It summarises the key findings and identifies the potential research gaps in the extant literature. A pool of 206 research articles are chosen based on relevance and impact from a variety of reputed databases spanning over 1981-2020. The authors use the guideline of Templier and Paré (2015) and follow the narrative approach of literature review which consists of gathering and synthesising existing literature on share buyback. The diverse strands of literature on buyback are classified based on different research themes. The results indicate a paucity of research on share buyback in emerging markets (e.g., India and China). Overall, the research in the following areas is found to be sparse: buyback and firm's reputation and the wealth effect of buyback on bondholders. The impact of executive reward schemes post buyback and presence of industry effect remains largely untapped.

Keywords: share buyback; liquidity; tender offer; open market; signalling.

DOI: 10.1504/IJICBM.2022.120918

International Journal of Indian Culture and Business Management, 2022 Vol.25 No.1, pp.38 - 71

Received: 25 Sep 2020
Accepted: 03 Jan 2021

Published online: 17 Feb 2022 *

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