چكيده فارسي :
This study aims to identify the motivations and determinants for share repurchasepractices in Saudi Arabia. The data were collected through a questionnaire survey,covering two groups–financial managers and academic staff, and the 122 responsesreceived were analysed using the Mann-Whitney Test. The findings reveal thatthe five main incentives for repurchases, in Saudi Arabia, are “to improve thecompany’s earnings per share’’, “to increase share price”, “to signal management’sconfidence in the future level of earnings and share prices”, “to remove a specificshareholder”, and “to reduce the administrative cost of small shareholdings byremoving minority shareholders”. Additionally, four potential determinants areproposed as follows: “good corporate governance”, “company size”, “ownershipstructure”, and “management’s experience”. This paper is probably the first tostudy share repurchase activity in Saudi Arabia. Thus, it adds new evidence from adeveloping country to the growing literature, thereby contributing to the knowledgeof the practice of share repurchases. Previous findings have interesting implicationswhich could be helpful to investors, management, regulators and legislators in theirattempts to comprehend the incidence of share repurchase practices and resolveagency problems. The specific economic and cultural conditions in Saudi Arabiamay restrict the generalisability of this study.
كليدواژه :
share repurchase , motivations , determinants , Saudi Arabia.
