An efficient market is a market in which prices fully reflects all information. Efficiency of the market can be judged operationally and informationaly. The present study is focused on the informational efficiency of the Indian capital market. A capital market is said to be efficient with respect to corporate event announcement (stock split, buyback, bonus issue, right issue, merger and acquisition and dividend etc.) contained information's and its disseminations. How quickly and correctly the security prices reflect these event contained information shows the efficiency of the stock market. The present study is investigating the impact of buyback of shares on share prices in India. Essence of share buy back announcement presented in the literature is that the announcement has a positive impact on the stock returns before and after the event. To examine the impact on stock prices, event study model has been used.
Buy Back, Stock Prices, Abnormal Returns
