{"product_id":"corporate-share-buybacks","title":"Corporate Share Buybacks","description":"\u003cp\u003eThis book integrates elements from agency theory and signalling theory and draws upon recent changes in the Australian payout policy and incentives pay for risk-averse employees to provide theoretical and empirical analyses that explain the paradox of the popularity of on-market stock buyback activities in a market environment characterised by reasonably high share prices.\u003c\/p\u003e\u003cp\u003eThe authors utilise a dynamic model that rationalises this paradox, which is divided into three components. The first component predicts that executives may be conducting on-market stock buyback programmes (SBPs) to adjust equity-based remuneration for risk-averse employees, thereby motivating their performance without granting them additional costly equity incentive plans (EIPs); the second component predicts that companies are likely to invest in SBPs to increase the ownership stakes of employees in the firm, thereby inducing risk-averse employees to increase their productivity which increases firm value; while the third component predicts that shareholders would benefit from incentives-induced buybacks if a firm’s opportunity cost of funds spent on buybacks is less than its inverse price-to-earnings ratio.\u003c\/p\u003e\u003cp\u003eThe authors’ findings highlight differences in the market responses towards announced repurchase motives, implying that not all incentives-induced buybacks are value-destructive buybacks. Specifically, the widespread assumption that SBPs stifle investments in human and capital stock may be subjective as the findings show that incentives-induced buybacks may be value-creative or value-destructive depending on share repurchase motives of SBPs.\u003c\/p\u003e\u003cp\u003eThis book will be a useful guide for scholars and researchers of finance, corporate finance, financial economics and financial accounting.\u003c\/p\u003e","brand":"Taylor \u0026 Francis Ltd","offers":[{"title":"Default Title","offer_id":54657085997400,"sku":"9781032131160","price":56.99,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0278\/1295\/4195\/files\/9781032131160_45995d31-9b9a-4a1d-840c-386b628488b6.jpg?v=1768361436","url":"https:\/\/agendabookshop.com\/products\/corporate-share-buybacks","provider":"Agenda Bookshop","version":"1.0","type":"link"}