ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book ntroduces the research overview and research problem, together with its associated research questions. It investigates the effects of on-market stock repurchases on equity incentives pay for risk-averse employees and shareholder value. The book discusses the theoretical framework that determines a sense of structure that guides the current study. It discusses the literature review related to stock buybacks. The book aims to quantify the net effects of stock buyback programmes on the equity incentive plans for employees and estimate the role of earnings per share in shaping the incentives pay-repurchase association. It provides robust empirical analysis by investigating the long-term performance of repurchasing firms to assess if any mispricing of assets resulting from short-term market volatility has been detected and corrected.
