Virtus InterPress

THE EFFECT OF SPECIFIC SHARE REPURCHASES ON SOUTH AFRICAN PAYOUT RATIOS: AN EXPLORATORY STUDY

Annalien de Vries, Pierre D. Erasmus, Willie D. Hamman, Nicolene Wesson

DOI: 10.22495/rgcv2i1art5

Abstract

This article reports on an investigation of whether the introduction of share repurchases in 1999 resulted in differences in the dividend payout ratios of South African listed firms. Dividend payout ratios for the two ten-year sub-periods preceding and following the introduction of share repurchases respectively are compared for a sample of repurchasing firms and all listed firms. The results indicate that dividend payout ratios were statistically significantly lower during the ten-year sub-period following the introduction of share repurchases than before. The payout ratios for those firms involved in specific share repurchases, however, were found not to differ significantly from payout ratios in general. Furthermore, the payout ratios of repurchasing firms did not change significantly during the two sub-periods.

Keywords: Specific Share Repurchases, Payout Ratio, Distribution Policy

How to cite this paper: de Vries, A., Erasmus, P. D., Hamman, W.D., & Wesson, N. (2012). The effect of specific share repurchases on South African payout ratios: An exploratory study. Risk Governance and Control: Financial Markets & Institutions, 2(1), 41-50. http://dx.doi.org/10.22495/rgcv2i1art5

Download This Article
Corporate Governance Experts Global Repository
Merio Honor Честь
Ryoushin Conscience Совесть
Kouki Nobility Доброе имя