Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: Share repurchase activity (or buybacks), as a corporate finance decision-making
tool, has increased steadily over the years, both in the USA and in other markets
around the world.
This research report investigates share repurchase (of ordinary shares) activity in
South Africa between July 1999 (when buybacks were legalised) and December
2006. Consistent with empirical evidence elsewhere in the world, the results
show that South African companies have increased their share repurchase
activity in absolute terms (volume and value).
Corporate South Africa is estimated to be sitting on a huge cash pile of
approximately R600 billion (or 38% of GOP) - a significant prerequisite for share
repurchases. In the absence of potential projects and acquisitions that meet the
firms' weighted average cost of capital, it is reasonable to expect that the level
and value of buyback activity will increase in the foreseeable future. / AFRIKAANSE OPSOMMING: Die aandeleterugkoop-bedrywigheid (of aandeleterugkope), as 'n korporatiewe finansiele
besluitnemingshulpmiddel, het geleidelik toegeneem oor die jare, beide in die VSA en in
ander markte wereldwyd.
Hierdie navorsingsverslag ondersoek die aandeleterugkoop-bedrywigheid in Suid-Afrika
tussen Julie 1999 (toe terugkope wetlig geword het) en Desember 2006. In Iyn met empiriese
bewyse elders in die wereld, toon die resultate dal Suid-Afrikaanse maatskappye
hul aandeelterugkoop-bedrywighede in absolute terme (volume en waarde) verhoog het.
Oit word beraam dat korporatiewe Suid-Afrika 'n groat kontantreserwe van bykans R600
biljoen (of 38% BBP) het - 'n noemenswaardige voorvereiste vir aandeleterugkoop. In
die afwesigheid van potensiele projekte en aankope wat die firmas se geweegde gemiddelde
koste van kapitaal behaal, is dit aanvaarbaar om te verwag dat die vlak en waarde
van terugkoopbedrywigheid in die afsienbare toekoms sal verhoog.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/20834 |
| Date | 12 1900 |
| Creators | Kokokoane, Nimrod |
| Contributors | Hamman, Willie, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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