Stock repurchase programs : evidence from Casablanca stock exchange

Dissertant

Bin Kabbu, Umar

Thesis advisor

Koubida, Salim

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2010

English Abstract

This research investigated the buybacks in Morocco using the firms listed in CSE that initiated a repurchase program between the period of 2003 and 2008.

The majority of firms that initiated the programs had low debt to equity ratios and show positive cash position.

The prices also increase by an average of 14% after one year of the repurchase.

However, there was not a big change in the capital structure of firms at the post repurchase phase; few firms moved from an extremely low D/E ratio or a high D/E ratio toward a more balanced leverage.

The advanced analytical part showed evidence that there is a relationship between the program size and the pre-repurchase debt to equity and Cash/Total Assets ratios.

Firms could take into consideration the restructuring plans (even minor) and the level of cash to be disbursed, in case there is a lack of investment opportunities, when deciding on the repurchase program size.

Evidence also showed that the success of programs is dependent on the premiums offered one day and one year after the announcement.

Main Subjects

Financial and Accounting Sciences

Topics

• Morocco

No. of Pages

48

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-625441