Determinants of Share Buyback Decision of High Technology Companies in the US Market

This research is devoted to the analysis of the determinants of high-tech companies repurchase decision. The determinants impact of the was analyzed both for buyback decision announcement and for the buyback volume as a key term and condition of buyback decision. The research is based on a sample of the 103 Communication & Technology companies included in the SP 500 index of the US stock market. The research time horizon is 2015–2020. In the theoretical part of research we have described the buyback academic constructions that can be recognized as the most relevant for the Communication & Technology companies, identified the determinates related to the Communication & Technology operations and investigated the correlation between those determinates and US tax reform 2017 and buyback. The empirical part we have predicted the value of сash holding for each company from the simple by the linear regression and saved the meanings of the variable as a buyback decision determinant. At the next research step, we have verified and proved the impact of tax savings, cash holding level and level of R&D expenditures on the share buyback announcement by logistic regression. However, the impact of option program, undervaluation, previous buybacks and ROA was not approved. At the final step we have used the tobit regression to verify and prove the impact of cash holding level, R&D cost level, option program, investment potential, previous buybacks and ROA on the volume of share buyback. However, the impact of tax savings was not proved.