Disclosure, Transparency and Regulation of Open Market Repurchases in Australia
Christine Brown, John Handley, Asjeet S Lamba
COMPANY AND SECURITIES LAW JOURNAL | Thomson Reuters | Published : 2020
Australia simplified the legislative framework governing share repurchases in 1995. We analyse detailed daily data on Australian companies' open market repurchases (OMRs) to document the extent of Australian OMRs and investigate company compliance with buyback regulations. We compare Australian regulation with that in other jurisdictions. Similar to other markets, Australian companies must follow exchange rules regarding the price of their transactions. We find companies are generally compliant with the existing regulations governing OMRs. However, unlike in most other countries, Australian regulations do not restrict the volume of shares companies may repurchase on-market in any day. In add..View full abstract
Awarded by Australian Research Council
This research has been funded under the Australian Research Council's Discovery Project funding scheme (project number DP0878537). We thank Anne Ritter for her excellent and diligent research assistance. Helpful comments from Kevin Davis, discussants Frank Skinner at the 2016 INFINITI Conference and Robin Dottling at the 2016 Australasian Finance and Banking Conference, Ian Ramsay and participants in the University of Queensland seminar series are acknowledged. We are grateful to Julie Dang from the ASX for insights into ASX procedures. We thank an anonymous referee for helpful and insightful comments.