Share repurchase announcements and abnormal returns on the Oslo stock exchange : an empirical study measuring abnormal returns following share repurchase announcements in Norway
Abstract
This thesis examines share repurchase announcements from 2000 to 2020 on the Oslo Stock
Exchange (OSE). This dissertation provides new research on share repurchases in Norway by
investigating an unexamined period. The majority of studies are conducted in larger
economies, while this thesis adds literature on the phenomena on the OSE. Previous research
by Settem (2008) examines share repurchase transactions from 2002 to 2004, uncovering
significant abnormal returns from share repurchases. This is equivalent to Skjeltorp's (2004)
previous findings. However, our study measures the signaling effect of repurchase
announcements. This thesis finds a positive short-term abnormal return following a share
repurchase announcement. Contrary to previous findings, the size of the repurchase seems to
have a significant impact on the abnormal return. In addition to the quantitative analysis, seven
interviews were conducted to enlighten the subject further and highlight how various
companies perceive this method of returning excess cash to shareholders.