Determinants of buy-back policy

<p>The aim of the study supports the theoretical basis of share repurchase realization, identification and analysis of influence of the key buyback determinants. The following steps describe objectives of the study: construction of a theoretical basis, correction of hypotheses based on peculiarity of the Russian legislation, determining the linkage of theories with buy-back factors, data collection for the Russian buybacks practice, testing hypothesis on the sampling obtained, and interpretation of the findings. Objects of the research are announced and realized share repurchases on the Russian market for the period from 2006 to 2013. Subject of the research is specification of information about the companies that conducted buyback. Empirical methods were used to assess the impact of market fluctuations, dividend policy and the availability of options programs on the buyback decision-making process. Probit-model is built to test some factors of share repurchase procedure.</p><p>Structure of the paper: Chapter 1 describes the nature and methods of buyback procedures implementation, Chapter 2 describes the main theories explaining the causes of buyback, Chapter 3 reveals the peculiarities of the Russian legal system in terms of buyback procedures, Chapter 4 defines and links the theory with factors, Chapter 5 is a practical part of the hypotheses testing and verification, describing main conclusions.</p><p>Volume of the paper is 44 pages, which includes 3 tables and 7 pictures. 28 sources were used.</p>