Stock Repurchases - A Sustainable Fashion?

The academic research and the practicing of corporate§finance are more challenging and exciting than ever§before. The last decade has seen fundamental changes§in financial markets and financial instruments §before the current global depression and indeed§afterwards. On one hand, the changing world of§financial markets including the corporate payout§policy makes it more difficult to keep expertise up§to date. On the other hand one has to distinguish the§permanent from the temporary and avoid the temptation§to following fads.§Since 2000 share repurchases have been legalized in§Sweden, with the purpose to provide companies a§profitable way to distribute capital. After§announcing buybacks, companies are subject to§uncertainty concerning investor s reaction and§economic consequences. This book analyzes if share§repurchases have been developed as a common used§financial instrument within the Swedish capital§market by verified statements and quantitative§findings. Furthermore this fundamental investigation§deals with a wide range of financial indicators for§explaining underlying economic conditions for§repurchasing own outstanding shares on a sustainable§level.