Like what I previously mentioned, I did a research on long run impact which is 3 years of tracking impact of share buyback to share price.
To my surprise, I found many of these share buyback company actually perform much lower than the benchmark which is the Kuala Lumpur Composite Index.
Out of the 270 companies found initiated share buyback program from 1999 until 2008, only 94 are found to outperform the market. Many of these companies eventually go privatisation after initiated share buyback.
Hmm, seem like its different from what I previously thought that the company are giving signal and possible for abnormal returns. Therefore, I need to research some more what can be real indicator of a company that going to outperform the market.
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