ANNOUNCED REASONS AND ANTICIPATED RESULTS OF SHARE REPURCHASE PROGRAMS – CASE OF WARSAW STOCK EXCHANGE COMPANIES

The article aims to present the meaning of the share repurchase (also called as buy back
or buy-back) programmes and to identify the reasons announced and potential results of share
repurchase made by firms listed on the Warsaw Stock Exchange (WSE) in Poland. The main
hypothesis to be verified states that there are more reasons to repurchase shares than just cash
transfer to shareholders and there are different results than just diminishing cash holding.
The problem is significant enough because share repurchase in the literature is deemed as
a substitute for dividends and as another way for cash transfer to shareholders
On carrying out the research for the selected listed companies, I found that shares might be
repurchased for many different reasons and not only to signal the excessive amounts of cash held
in the corporation. Viewing by the numbers it is possible to state that transferring cash is the least
important reason while repurchasing shares.