Title: DETERMINANTS OF SHARE REPURCHASE IN NON-FINANCIAL COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE
Author: ELLIV HIDAYATUL LAILIYAH
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The aim of this research is to examine and analyze the influence of free cash flow, dividends, mispricing (misvaluation), leverage, firm size, and managerial ownership on share repurchase in non-financial companies listed on the Indonesia Stock Exchange. Samples were taken using a purposive sampling method based on certain criteria. The data analysis technique uses multiple linear regression statistical analysis techniques with the statistical software tool IBM SPSS Statistics 21. The research results show that free cash flow has a positive effect on share repurchase. Free cash flow is funds for carrying out share repurchases so that if the free cash flow increases, shares can be repurchased in greater amounts. Dividends have a positive effect on share repurchase. In Indonesia, share repurchase is used as a complement to cash distribution and is not a substitute for dividends. Misprice (misvaluation) has a positive effect on share repurchase. In Indonesia, share repurchases are not only carried out by undervalued companies, but on average companies in overvalued conditions also carry out share repurchases. Leverage has a negative effect on share repurchase. Companies with leverage below the target tend to carry out share repurchases. Firm size has a positive effect on share repurchase. Large companies have more financial capacity to carry out share repurchases. Managerial ownership has no effect on share repurchase. Most companies in Indonesia have very small managerial share ownership.
Keywords: share repurchase, free cash flow, dividend, mispricing, leverage, size, managerial ownership
Sources: http://repository.unair.ac.id/81502/
