1 Enlisted 30 stocks with their Buyback announcement date 2 Collection of historical data for every company (Source: Capitaline.com, Google finance) 3 Regression of stock prices (from −365th day to 1st day) with respect to reference index (BSE SENSEX) 4 Formulation of Correlation equation for every individual stock 5 Using the correlation equation finding the expected return from −20th day to +20th day 6 Finding an Average Abnormal Return (AAR) for every stock using data of actual return and expected return 7 Finding the value of Cumulative Average Abnormal Return (CAAR) for descending dates from −20th day to +20th day 8 Finding the t-stat value for descending dates from −20th day to +20th day 9 For deduction of conclusion the deviation of actual return from expected return has been observed till the 20th day after buyback announcement & result has been tabulated on the basis of AAR Abnormal Return (AR) = Actual Return − Expected Return Average Abnormal Return (AAR) = (1/n) S(1 to n) ARn Cumulative Average Abnormal Return (CAAR) = S(t − k to +k) AARt where, n = sample size, S = Population standard deviation, −k = −20th day, +k = 20th day