Dissertation/Thesis Abstract

Corporate governance and earnings management before share repurchase announcements in Singapore
by Chua, Jian Ming, M.Sc., Singapore Management University (Singapore), 2011, 87; 1494090
Abstract (Summary)

Share repurchase in Singapore was legalized in 1998. It is well known that investors view share repurchase as good news. This study is based on share repurchase announcements from 2006 to 2009. The mean Cumulative Market-Adjusted Returns (CAR) for the period [0, +1] and [-1, +1] are significant at 1.25% and 1.33% respectively. In Singapore, there are positive abnormal returns following share repurchase announcements in support of the "free cash flow" hypothesis. By using the Singapore Corporate Governance Index as a proxy, the weakly governed companies exhibit the strongest, positive and significant CAR of 2.62% for the period [0, +1].

Lastly, one year prior to share repurchase announcements; companies on average manage their discretionary current accrual downwards by 1.44%. The companies with the best corporate governance manage their earnings downwards by 2.69%. In a regression, the CAR for the period [0, +1] changes by 0.1097% when the discretionary current accrual changes by 1%.

Indexing (document details)
Advisor: Goh, Jeremy
Commitee:
School: Singapore Management University (Singapore)
Department: Lee Kong Chian School of Business
School Location: Republic of Singapore
Source: MAI 49/06M, Masters Abstracts International
Source Type: DISSERTATION
Subjects: Management, South Asian Studies
Keywords: Corporate governance, Earnings management, Share repurchase
Publication Number: 1494090
ISBN: 9781124679877
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