A Difference Analysis of Performance Shares Before and After Buyback Announcement: A Case Study at Pt Ramayana Lestari Sentosa TBK and Pt Ace Hardwarer Indonesia TBK Over a Period of 2015

Abstract

Stock buyback is a share repurchase by the company (issuer) which is one of the ways the company does to generate profits for shareholders. Stock buyback is part of investment strategy in order to increase company value. This study tries to observe the information content of the buyback policy that uses a variable of Return (R), Abnormal Return (AR), and Cumulative Abnormal Return (CAR). This was a descriptive research with a quantitative approach. The form of this research was an event study. The research result reveals that there is a significant difference in return before and after the stock buyback. The Abnormal Return shows that there is no significant difference in Abnormal Return before and after the stock buyback. The Cumulative Abnormal Return shows that there is a significant difference of Cumulative Abnormal Return before and after the stock buyback. KEY WORDS Stock buyback, return, abnormal return, cumulative abnormal return.