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.