Publication Type
Master Thesis
Version
publishedVersion
Publication Date
2010
Abstract
Share repurchase in Singapore was legalized in 1998. It is well known that investors view share repurchase as good news. This study is based on share repurchase announcements from 2006 to 2009. The mean Cumulative Market-Adjusted Returns (CAR) for the period [0, +1] and [-1, +1] are significant at 1.25% and 1.33% respectively. In Singapore, there are positive abnormal returns following share repurchase announcements in support of the ―free cash flow‖ hypothesis. By using the Singapore Corporate Governance Index as a proxy, the weakly governed companies exhibit the strongest, positive and significant CAR of 2.62% for the period [0, +1]. Lastly, one year prior to share repurchase announcements; companies on average manage their discretionary current accrual downwards by 1.44%. The companies with the best corporate governance manage their earnings downwards by 2.69%. In a regression, the CAR for the period [0, +1] changes by 0.1097% when the discretionary current accrual changes by 1%.
Keywords
corporate governance, share repurchase, earnings management
Degree Awarded
MSc in Finance
Discipline
Asian Studies | Business Law, Public Responsibility, and Ethics | Corporate Finance
Supervisor(s)
GOH, Jeremy
Publisher
Singapore Management University
City or Country
Singapore
Citation
CHUA, Jian Ming.
Corporate Governance and Earnings Management Before Share Repurchase Announcements in Singapore. (2010).
Available at: https://ink.library.smu.edu.sg/etd_coll/60
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Asian Studies Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons