A Study of Buyback of Shares as a Restructuring Tool: Reference to the Indian Companies Act

International Journal of Research in Management & Social Science, Volume 6, Issue 1(I): January-March, 2018

7 Pages Posted: 10 Jun 2018

See all articles by Hiral Vyas

Hiral Vyas

GLS University

Patel R. K.

Hemchandracharya North Gujarat University

Date Written: March 1, 2018

Abstract

The term corporate restructuring is coined to elaborate the process of rearranging the sources of funds by the management to achieve the desired goal of the business. The paper is an attempt to understand one such widely accepted tool of restructuring namely, buyback of shares along with methods and factors that motives management to opt this tool. The paper is an attempt towards the verification of the factual details in legal aspect of buyback program in India to safeguard the interest of the stakeholders and restricting the self-enrichment of the managers. Further study of the topic can be done by taking the financial data of the companies opted for buyback of shares to verify the object whether shareholders’ wealth creation object is served or not.

Keywords: Book Building, Corporate restructuring, EPS, Odd Lot, Takeover Deterrence

JEL Classification: G32, G34

Suggested Citation

Vyas, Hiral and R. K., Patel, A Study of Buyback of Shares as a Restructuring Tool: Reference to the Indian Companies Act (March 1, 2018). International Journal of Research in Management & Social Science, Volume 6, Issue 1(I): January-March, 2018, Available at SSRN: https://ssrn.com/abstract=3171649

Hiral Vyas (Contact Author)

GLS University ( email )

Law Garden
Elisbridge
Ahmedabad
India

Patel R. K.

Hemchandracharya North Gujarat University ( email )

Patan 384265
India

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