Title: Investment Opportunity Set, Undervalue and Stock Repurchase in Public Companies in Bei
Author: Arif Kurniawan
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
Stock repurchase or share buyback is an action carried out by issuers or public companies to buy back shares that have been offered to the public either through the stock exchange or outside the stock exchange. There are many motives behind this corporate action, one of which is that the company lacks investment opportunities and the company's shares are undervalued. The results of this research aim to determine the influence of the Investment Opportunity Set (IOS) and undervalue on stock repurchase decisions by companies. The data used are 35 non-financial companies that carry out stock repurchases and 35 non-financial companies paying dividends that are listed on the Indonesia Stock Exchange (BEI) in the 2008-2013 period. Logistic statistical tests were carried out on the Investment Opportunity Set (IOS) and Market to Book Ratio (MTBR) variables as proxies for the undervalue of each company. The results of logistic statistical tests show that the Investment Opportunity Set (IOS) has a negative and significant influence on the possibility of a company carrying out a stock repurchase, so it can be said that a company carries out a stock repurchase when the company lacks investment opportunities. Meanwhile, undervalue has a negative and significant influence on the possibility of a company carrying out a stock repurchase, so it can be said that a company carries out a stock repurchase when the company's shares are undervalued.
Keywords: Stock repurchase, dividend, Investment Opportunity Set (IOS), Undervalue
Sources: http://repository.unair.ac.id/33619/
