Corporate Share Buybacks - Impact on Equity Incentive Pay and Shareholder Value

Integrates elements from agency theory and signaling theory and draws upon recent changes in the Australia payout policy and incentives pay for risk-averse employees to explain the paradox of the popularity of on-market stock buyback activities in a market environment characterized by reasonably high share prices.

List of contents

1. Introduction 2. Equity compensation and stock buybacks background 3. Theoretical framework on incentives-induced buybacks 4. Literature review 5. Research design 6. Explaining the net effects of stock buyback programmes on the equity incentive plans for risk-averse employees 7. Explaining the effects of incentive-induced buybacks on stock performance 8. Explaining the effects of incentive-induced buybacks on the subsequent firm performance 9. Conclusion

About the author

Gilbert Amahoro Ndayisaba is a Lecturer in finance and accounting at the School of Accounting, Information Systems and Supply Chain, RMIT University, Melbourne, Australia.
Abdullahi Dahir Ahmed is a Professor in Wealth Management and Head of the Department of Financial Planning and Tax at the School of Accounting, Information Systems and Supply Chain, College of Business and Law, RMIT University, Melbourne, Australia.

Summary

Integrates elements from agency theory and signaling theory and draws upon recent changes in the Australia payout policy and incentives pay for risk-averse employees to explain the paradox of the popularity of on-market stock buyback activities in a market environment characterized by reasonably high share prices.

Product details

• Authors: Abdullahi Dahir Ahmed, Gilbert Amahoro Ndayisaba, Gilbert Amahoro Dahir Ahmed Ndayisaba
• Publisher: Taylor & Francis Ltd.
• Languages: English
• Product format: Hardback
• Released: 05.12.2023
• EAN: 9781032131146
• ISBN: 978-1-0-3213114-6
• No. of pages: 208
• Series: Banking, Money and International Finance
• Subjects: Social sciences, law, business > Business > Business administration; Business & Economics / Investments & Securities / General, Economics, BUSINESS & ECONOMICS / Corporate Governance, BUSINESS & ECONOMICS / Economics / General, BUSINESS & ECONOMICS / Finance / General, BUSINESS & ECONOMICS / Corporate Finance / General, BUSINESS & ECONOMICS / Accounting / Financial, Corporate Finance, business strategy, Financial Accounting, Management of specific areas, Investment & securities, Investment and securities