SHARE BUYBACKS IN SINGAPORE : ISSUES AND PROBLEMS

Abstract

The purpose of this thesis is to analyze and understand the motivations behind the newly adopted share buyback (SBB) mechanism in Singapore. In this study, we examine and evaluate the regulatory framework of this system and found that necessary safeguards have been carefully drawn up. In addition, other problems and issues with regards to the SBB implementation are discussed. We have also conducted an investigation into the SBB annoucement effects on the stock prices in Singapore. Although the practice of SBBs in Singapore is still in its infancy, our results indicate that SBBs in Singapore have positive information-signaling effects. The investors' positive attitude has made the realisation of its benefits possible. In short, while it is too early to conclusively assess the full impact of the SBB implementation, it has been off to a good start.