Pay Geri Alım Duyurularının Pay Getirileri Üzerindeki Etkisi: Borsa İstanbul’da Covid-19 Salgını Öncesinde ve Sırasında Karşılaştırmalı Bir Analiz
The Impact of Share Repurchase Announcements on Share Returns: A Comparative Analysis Before and during Covid-19 Pandemic in Borsa Istanbul

Summary/Abstract: Purpose – The aim of this study is to determine the short-term effects of share repurchase announcements of companies traded in Borsa Istanbul on share returns. In addition, the reaction of share prices to the share repurchase announcements before and during the COVID-19 pandemic is examined and compared. Design/methodology/approach – The sample of the study includes 101 notifications regarding the initiation of share repurchase transactions announced by 72 companies on the Public Disclosure Platform (PDP) during the 2018-2022 period. Employing the event study methodology, daily average abnormal returns (AAR) and cumulative average abnormal returns (CAAR) were calculated for different event windows, and then parametric and non-parametric tests were conducted to test the significance of these returns. Findings – Test results show that share repurchase announcements have statistically significant positive effects on share returns. In addition, it has been determined that there is a statistically significant difference in the reaction of share prices to the share repurchase announcements before and after the declaration of Covid-19 as a pandemic on March 11, 2020. Discussion – The findings indicate that there is a possibility of obtaining abnormal returns after share repurchase announcements in Borsa Istanbul. In addition, it is possible to state that the findings support the undervaluation and signaling hypotheses.

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