Share Repurchases: A Literature Review

  • Sarthak Kumar Jena Indian Institute of Technology, Kharagpur, India
  • Chandra Sekhar Mishra
  • Prabina Rajib


Share repurchases evolved as an alternative method of payout and a corporate finance tool in 1950 in the USA. From 1980 to 2000 it has achieved a significant growth as compared to dividend payment by companies. Then, share repurchase is gradually spread to other countries like UK, Canada, etc.  Pertinent to its growing importance, over the years an enormous literature has emerged that deals with many facets of share repurchase. This article classifies and organizes literature in relations to the established hypotheses, determinants affecting share repurchase decisions, the effect of share repurchase on liquidity and earning management around share repurchase. In additions to the above, this article also analyses the regulatory framework of Indian buyback starting from 1998. It gives a brief view of sections of old Companies Act (1956) and new Companies Act (2013) dealing with buyback. This article also provides a snapshot of SEBI buyback regulations, 1998 and also accommodates all the amendments.

Author Biography

Sarthak Kumar Jena, Indian Institute of Technology, Kharagpur, India

Research Scholar

Vinod Gupta School of Management

Indian Institute of Technology, Kharagpur

Research Articles