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 −365^th day to 1^st 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 −20^th day to +20^th 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 −20^th day to +20^th day

8

Finding the t-stat value for descending dates from −20^th day to +20^th day

9

For deduction of conclusion the deviation of actual return from expected return has been observed till the 20^th 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) AR_n

Cumulative Average Abnormal Return (CAAR) = S(t − k to +k) AAR_t

where,

n = sample size, S = Population standard deviation, −k = −20^th day, +k = 20^th day