%0 Electronic Article %A Mitchell, Jason David and Robinson, Peter %I Wiley %D 1999 %D 1999 %G English %@ 0001-3072 %@ 1467-6281 %~ Katalog UB TU-Chemnitz %T Motivations of Australian Listed Companies Effecting Share Buy‐Backs %V 35 %J Abacus %V 35 %N 1 %P 91-119 %U http://dx.doi.org/10.1111/1467-6281.00036 %X The bulk of prior research on share buy‐backs has been undertaken in the U.S. As the legislative environment and capital market perception of buy‐backs in Australia are different to the U.S., it is both desirable and necessary to examine the motivations of Australian share buy‐backs. Contemporary Australian financial press reports, the U.S. financial management literature and anecdotal evidence provide numerous feasible motivations for a company to undertake a buy‐back. In an Australian context, this article considers the following: (a) the development of the legislative framework relating to share buy‐backs and why some forms of buy‐back are preferred over others; (b) a set of potential motivations (reasons) for Australian companies undertaking a buy‐back; and (c) the actual motivations as provided in ASX announcements by forty‐four listed companies effecting sixty‐seven share buy‐backs over the period 1990 to 1995. Results reveal that motivations differ depending on the type of buy‐back and are reasonably consistent across time. The two prime motivations for on‐market buy‐backs are: (a) signalling of future expectations (underpricing), and (b) an attempt to increase financial performance (EPS) and/or position (NAB/share). For selective buy‐backs, the main purpose is to remove specific shareholders from the share register. Employee buy‐backs are generally seen as an off‐market means of providing a market for the company’s shares. Finally, the overriding motivation for equal access buy‐backs is as an alternative to dividends. %Z https://katalog.bibliothek.tu-chemnitz.de/Record/ai-49-aHR0cDovL2R4LmRvaS5vcmcvMTAuMTExMS8xNDY3LTYyODEuMDAwMzY %U https://katalog.bibliothek.tu-chemnitz.de/Record/ai-49-aHR0cDovL2R4LmRvaS5vcmcvMTAuMTExMS8xNDY3LTYyODEuMDAwMzY