Determinants of Stock Repurchase: An Empirical Study on Egypt | ||||
| المجلة العربية للإدارة | ||||
| Articles in Press, Accepted Manuscript, Available Online from 24 June 2025 PDF (183.42 K) | ||||
| Document Type: بحوث باللغة الإنجلیزیة | ||||
| DOI: 10.21608/aja.2025.381694.1844 | ||||
 View on SCiNiTO | ||||
| Author | ||||
Doaa El-Diftar 
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| Arab Academy for Science, Technology and Maritime Transport | ||||
| Abstract | ||||
| The purpose of this research paper is to investigate the motives and characteristics that distinguish companies conducting share repurchases in Egypt. The study is conducted on companies listed on EGX100 index from 2018 to 2023. The developed empirical model is tested using a pooled least squares regression, as well as Logistic and Probit regression models. The results show that stock repurchase decisions in Egypt are more dependent on external factors such as natural hazards or nationwide reforms rather than on firm specific factors. Most of the firm specific characteristics are found to have insignificant impact on stock repurchase, indicating that globally accepted theories of stock repurchase may not be applicable in a developing country like Egypt. This research provides policy makers with empirical evidence that reforms regarding share repurchase are very influential, thus, such reforms need to be cautiously made. This research paper adds value to the literature of share repurchase in Egypt and may also be used as preliminary study in further investigating the real motives behind this decision. | ||||
| Keywords | ||||
| Stock Repurchase; Free Cash Flow Hypothesis; Signaling Theory; Dividend Substitution Theory; Egypt | ||||
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