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8/4/2019 Turnitin Final

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Share buyback activity has been one of major areas in the global capital market. In the

previous times it has only been restricted inside the US. But now it has crossed the

entire boundary of US and entered in all developed countries like UK and Japan. once

said that until the year of 2005 the share buyback activity throughout the world had

been around US$ 400 billion dollars. In the UK share buyback activity has seen a

significant rise in the percentages of the company involved in the share buybacks

activity. This volume of activity has surpassed the volume of activity in US. In UK at right

now, it is almost 10 times higher than the one decade ago Even UK companies in late

nineties paid higher amount of cash to pay the dividends to the shareholders. This waveof the share buyback activity has been increasing from the past days. US companies

did pay around US$ 82 billion dollar of excessive cash to the shareholders in the period

of 2004. Shares are bought back for particular purposes in the market. Share have been

bought back to achieve the goals of the company. In this research process Researcher

did choose a particular banking plc (HSBC) and it helped him to this research process

successfully. It will definitely give benefit to this researcher to go for detailed research

and analysis based on a case study of one company. In the year of 1993 it was found

that GBP 350 million pounds of shares were repurchased in UK. So it proves the

present significance of the share buyback activity for the companies in recent times.

Activity of the share buyback hasnt been that much important during the 1980s. The

term has been used as share repurchasing one in United States. Share buyback activity

has been one of the major concerns for the company during the period of 1980s in US.


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Around several hundred billion dollars of share have been repurchased by the

companies and that proved to be one of the important one. This share buyback activity

has become prevalent in the time of 1990s in UK. This activity has totaled around GBP

46 billion pound in 2006. It was only GBP 10 billion pounds in 1990s.In the US share

buyback activity by the S&P 500 companies in the second quarter of 2008 were US$ 89

billion dollar, most importantly those were down by 44% in the same period of 2007. Till

the year of 2007 the share buyback activity of UK was in full flow, but due to financial

crisis of 2008 it halted for 2-3 years. The reason behind this halt was that major financial

companies have suffered badly during the period of this recession. It went on to fall foraround 43% in that period in UK. The same fell around for 44% in the US (. But

whatever is the condition of the financial market, the share buyback activity would

always remain one of the major tools for the companies to satisfy the shareholders.

The research topic was aimed at analyzing the share buyback activities of top banking

companies in the UK. As it was helpful for the researcher to give a view on the banking

industrys share buyback capability. In addition, it also assisted the researcher to check

whether all external adversaries would affect this companys share buyback activities or

not. So the objectives for this research were

To review the views of different authors on the topic of share buyback

activities.

To examine the different views of the managers as to see the differences

in the practices.

To analyze the views of shareholders and employees of the HSBC plc.


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To investigate into the timing of the share buyback activities

In order to carry on with this research for the comparative study of share repurchasing

activities in HSBC Researcher wanted to answer all the following research questions:

What are the primary reasons that influence the share buyback activities in

HSBC Bank?

What are the external forces that influence the rate of share repurchasing

activities in the HSBC Bank?

Is the share repurchasing activity of HSBC bank intending to satisfy the

shareholders only?

Share Buyback activity has been the process that helps a company to buy back their

own shares. It gives the company an opportunity to increase the dividend for the

shareholders. It also helps the shareholders when they compare share buyback activity

to the dividends. Shareholders do get flexible time period when to sell the shares to

realize their cash..The company management in UK, US do purchase their own stocks

while distributing the extra amount of cash to shareholders. Remaining profits are

assigned as equity for the shareholders in the company to use it in for some other

purposes in future. Even share buyback activity has another important side of the profit

for the management. It reduces the number of shares those are retained by the public.

The reduction of the float, or publicly traded shares, means that even if profits remain

the same, the earnings per shares would increase So, particularly for repurchasing

shares, when a company's share price is perceived as undervalued or depressed, it


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may result in a strong return on investment. Beside this the free cash flow; share

buyback activity has been used as one of the important signals in taking the advantages

of the undervaluation. So thus if the shareholders believe that the share prices of the

company has been trading below the intrinsic value he might choose to buy back the

shares of the company. For executives of corporate houses they do believe that share

buyback is unique executive compensation and could easily fulfill the earnings per

share targets of executives. Those companies that have the capability to generate cash

and also when they have limited needs for spending of the capital would accumulate

those cash on the balance sheet only. So we can find several benefits of the sharerepurchasing activity. So, the researcher formulated a research topic based on UK

based company This entailed the researcher to formulate all reasons for the share

buyback activity in banking organization of UK.

In the chapter one the Introduction has been described. Share Buyback activity has

been one of the important one for the capital market. Mostly all the previous share

buyback activities were based on the US based companies. Even the history of the

share buyback activities were described thoroughly. It was found that the amount of

share repurchased was noted for the period. It was seen that around US$ 400 billion

dollar has been invested in the share buyback activities in the last two decades in US.

Rationales of this research study were directed towards the reasons for doing this

research process. Next to that outline of the dissertation was made which is effective as


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well, as it helps the readers and also the researchers to review the full dissertation by

brief views. In this first chapter researcher successfully described all the important

points and accumulated all those points before writing on for this report. All the points

were discussed in order. Those were Introduction, History of share buyback activity,

Aims and Objectives, Research questions, Rational for the research and last but not the

least is outline of the dissertation.

Literatures Review has always been important for any kind of research process. As it

gives the direction to the researcher to review the study of the previous authors work

based on the study of share buyback activity. Share buyback activity thus has been

studied extensively in detail in past twenty years. There have been several areas of the

share buyback activities where the researcher can get extensive knowledge for his own

research study. Those areas are Timing of the share buyback activity, Reason for

share buyback activity, Shareholders area of concern for share buyback activity,

Involvement of the management in the share buyback activity, etc. All these are

important for the analysis and research process of the share buyback activities. The

most important case is that the study of this research process was totally based on UK

perspectives, thus Researcher involved himself in looking for the findings of literatures

based on recent activity.

This chapter was based on methodology. The selected research process completely

based on share buyback activities of HSBC UK. Thus the researcher was prudent

enough to apply exact areas of the research like; Researcher selected Interpretivists

Paradigm with Inductive approach for this research process. Next to that the researcher

selected Case study research strategy as it would be helpful for him to conduct close


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ended questionnaires and Semi-Structure interviews. Even before applying every single

process for this research researcher did give all possible justifications of selecting of

particular process and the same for the rejection of a particular method. At last

Researcher applied the thematic data analysis method as the data that has been

collected were only the qualitative one. That made the research methodology chapter to

finish off in proper way. Researcher found it easier to move in the next chapter.

This chapter was one of the important one after the methodology. As all collected data

were analyzed with giving proper reasons. In this research process researcher did

collect only one form of data that is qualitative data, so for these types of data

Researcher used thematic analysis. Next to that all data were analyzed with proper

analysis. For the close ended questionnaires Researcher used charts and tables to

compare the statements of different respondents. It was completed successfully by the

researcher. For Semi-Structured interview researcher used different statements of the

managers to critically analyze the Semi-Structured interview process.

In the beginning of this chapter the researcher did evaluate all findings by relating it to

the previous chapters collected data. In addition Researcher was successful in linking

up each single objective with the literatures and findings. That was one of the important

points for this research process. As aims and objectives need to be matched with the

literatures and findings that made the research process successful. Next to that

researcher used wrote some areas in the limitations of this research process. Even the

researcher gave recommendations for the management of HSBC. In the last point

researcher was prudent enough to give the directions for future research in this area.


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This marked the end of the first chapter of the dissertation. In this chapter researcher

discussed about the share buyback activities those are the main areas of this research.

He described every possible area of the share buyback activity as the time period for

this research was not too long. Even In the history section, the researcher gave few

significant incidents of the share buyback activity that happened both in US and UK.

Next to that he described the researchs aims and objectives and research questions

before going in to the rationale for this research study. In the last point researcher did

give the outline of this dissertation, by giving a brief overview of each single chapter.

In this very chapter the context of some effective literature were discussed. Share

Buyback activity has been a global phenomenon. The previous chapter did describe the

introduction part of the share buyback activities. This chapter discussed about some of

important areas of the share buyback activities. The context of this very dissertation

topic was marginally based on the form of share buyback activities that started to takeplace in the United States around three decades back. The concept of the share

buyback activities have been practiced in the United States from 1970s onwards. It was

thus obvious for the rest of the world to follow United States as they have been the


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global power in the economic field. This share buyback activity does help to increase

the share price of the company. In the year of 2005 this famous activity helped to earn

a total of approximately US$ 400 billion dollar in the world market. In addition it is also

important to look for the different other reasons for this prcised activity

Share Buyback activities are related to the individual circumstances of the company. A

companys management does take the decision when to buy a share and when to sale

a share.

A Buyback activity of the company is to purchase companys own shares from the

market. These shares get cancelled after that. Even the companies determine to keep

those bought back shares in the form of treasury shares, this will be able to help the

company to resale their shares again in future or it can also be allocated in to fulfill

share options or it is to avoid the issuance of new shares in the market

A stock repurchase has been a non-cash distribution towards the shareholders for

involving in the adjustments for the firms financing mix, ownership structure and also the

asset composition. Share repurchase is often referred as one of the buyback program

and it has been an open policy that is approved by the board group of directors. It has

been one of the formal policy in the sense of the institutional cases and in that case

structure of the planning and the procedures will relatively standardize across all firms

The plan does help typically to indicate all the rationales for the share buyback activity

and it describes how the share buyback activity is going to affect the activity of the

banks. During the period institutional investors of shareholder groups, and all other

share regulatory groups voiced for several other accounted issues. These all concerns


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have manifested themselves as all the pressures of the firms for adopting all policies of

share buyback program and in addition it demonstrates the corporate control over

managerial behavior on behalf of the interest of the shareholders

It has been found out from one of the study that since 1987 US firms has been planning

for share repurchasing that is of around US$ 1 trillion (Sources: securities Data

Corporation). The entire phenomenon showed not a single sign of the waning during the

period of the stock market crash. There have been several literatures those examined

all different types of looks of the share buyback program which would help to adopt

these plans. In this case the financial economists have provided all typical enquires. In

the explanation of all the findings financial economists did provide several of the related

distinct arguments. First of the argument is that share buyback program will provide all

the investors all positive information on the perspectives of the firms. Firms willingness

for investing for share buyback activity will indicate that the management has enough

information about firms future. From that perspectives the adoption of the share

buyback program indicated that the management is more than wise to satisfy the

shareholders. Adoption of the share buyback activity does indicate that the

management is having encouraging information for their market. The perception has

been shar ed with the business press and it typically notes all the enthusiasm that Wall

Street loves It shows that they are standing by their shares and they also hoped that

individual and institutional community follows suitand on the other side repurchasing

program can be the signs of the greatness


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There has been second form of the argument for the free cash flow hypothesis

Marketers have seen it as one of the repurchasing plan that would help in their own

causes.

Precisely large share buyback activity is the process of carrying out the return of the

capital to the shareholdersOn the alternative side special dividend has been more

complex activity. Main advantages of the share buyback activity are linked to the

boosting of share price in the market. Companies do buyback numbers of share every

single year. Share buyback activity does help the shareholders to have more flexibility

instead they get it from the dividends. This does also help for minimizing the tax.

Shareholders even do sell the correct proportion of the holding amount for removing the

cash out of the company

did work on the issues of the dividend policy. These two authors did show that the

corporate share buyback program have been one of the important underlying activities

and pattern for the companies. These two authors did also show that under the

condition of the perfect economic condition in the market can also help the companies

and it also distribute the income of the shareholders instead of the managers. Number

of studies did describe that the share buyback activity has been important one and the

signaling mechanism does help to judge the information asymmetry between the

shareholders and managers of the companyIn addition if we see the words of different

researcher then we will see that did say that proposed distribution of the income have

been one of the important perspectives for the development of the company. It is also

costly for the company and it requires sufficient amount of cash for these payments.


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Dividend policy, investment decisions and capital structure are the three important

criterions of the share buyback activity. For the improvement of financial health

company needs to adjust three of the main elements and it also helps to influence the

share buyback activity. Flexible policy in the distribution does help in optimizing the

investment decisions of the company and it also enable the managers to retain the

income .Thus the company gets benefitted from the future investment and also it helps

in developing the capital structure. The debt providers are unlikely to be one of the

concerned with the dividend payments. Fixed expense of the company needs to fulfill in

the case of the regular intervals.

The companies throughout the world can use the income distribution process as one of

the mechanisms for managing agency costs in between the managers and

shareholders. Even there are situations in that type of case when the company has

excess cash flow; the management can be tempted to use it in the self-interest at the

expense of the shareholders. If we see the distribution policy then we will find that

company do deploy excessive cash flows thus the excessive cash flows prevent the

managerial interest and this will protect shareholders wealth Finances are important

prospects for the future investments. It also helps in the monitoring process of

managers by the help of the external stakeholders.

On the other hand in the case of agency costs the companies need to focus on the free

cash flows with few of the investment opportunity. Even the distribution program that


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returns excess amount of capital to the investors is completely valuable. This type of

investment opportunity does give the investors for reinvesting their funds in alternative

activities. It also helps to generate return higher than the companies are generally able

to achieve. So, in the absence of the positive investment projects companies do engage

themselves in the dividend payments. It also helped to enhance the share buyback

activities.

Shareholders expectation and pr eferences will definitely influence the distribution

policy. Shareholders do have preferences in case of income redistribution and also forthe income retention. They also use every single distribution policy for the shareholders.

In this case company shareholders do feel compelled. Situations underpinning

shareholders views on the case of distribution policies do include circumstances of the

shareholders, taxation policies, investors expectations. Shareholders do want regular

dividends in the share buyback programs as their income do depend on this process.

Investors do believe that they are in the better position for making capital investments in

the companies from which they can earn a big. One of the key considerations in relation

to the corporate shareholders is to depend on the characteristics of the individual

shareholders and their circumstances. Even the companies do think that there is

conflicting demand from different group of investors.

There are number of motivational support for the share buyback activities. Managers do

believe that shares of the companies are quiet undervalued thus the company do

engage themselves into the buyback activities and it will also signal the efficiency in the


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market, Even the market believes that managers purchase share when they think all the

shares are undervalued. So, share buyback activities do mark as one of the perceived

signaling process and it helps to adjust the upward adjustment in the share price.

Management can also repurchase shares as they dont have to look for the volume and

price restrictions. Even they influence to drive up the prices of the share. In other way

dividend payments, share repurchasing activity does enable company in addressing

undervalued signaling process for influencing the share prices. The extent to the activity

of these regulations does depend on regulations of that have been surrounded by the

share buyback activity. In the country like UK share buyback activity has been one ofthe major and influencing one to manipulating the share price. Maybe there are few

restrictions in the time of buyback activity. This disallows the share buyback activities

and in addition, the information asymmetry is at the highest stages. The same can be

seen in the case of buyback activity as there are few restrictions on the number of share

buyback. did oppose different use of the share buyback activities in the UK market. This

will definitely increase the EPS and market share prices. Also the authors did argue that

there must not be any kind of positive attribution for the increment of the earnings per

share. This impact the reallocation process as excess funds has been returned to the

investors. Authors on the other hand did suggest that EPS indicates the improvement in

the productivity of the company. Investors will also recognize all these changes and

they can also work on the improvement in the finance sectors productivity. did argue

that Earnings per share cant be the reason for the enhancem ent in to the share

buyback program of the company. This will enable the company for reducing the agency

costs by the return of the free cash flows toward the investors.


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In this context of the previous research potential motivations for the buyback activities of

the companies were studied. Maybe these all companies are listed in particular stock

exchanges and in addition the company has fixed number of ordinary shares

outstanding. It differs mostly in the non-investment companies in number of areas.

noted that several of the investment companies dont hold surplus cash thus those

companys buyback activities need to be funded by the help of the short term borrowing

and sale of investment activity. Thus the company will have to reduce the returning cash

flow.

Investment companies of UK are entitled to publish the net asset values (NAV) on the

regular basis. Net Asset Value generally represents the intrinsic values of the shares in

contrast to non investment companies. NAV represents the inner value of the shares

and thus for the non investing companies there is no effect in the information

asymmetry in between the managers and also with the investors in the consideration of

that particular value. Share repurchase program thus have not undervalued any kind of

the signal for undervaluing of the investment companies. On the other hand relation to

the capital structure hypothesis, investment companies in UK has had tax status that

will prevent them to have a benefit in tax reliefs. In the case of the share buyback

activities it can be seen that it helps to enhance the corporate value.Even some of the

investment companies do think of consideration of some of the related factors of

gearing. In order for qualifying in the tax approvals investment companies in UK need to

maintain certain areas of tests. Among all these incomes of the companies around 15%


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of the income comes from the investments. Even they must pay their earnings to the

investors. It renders dividend substitution decision as all these are irrelevant to all

companies. On the other hand if the capital markets are more than efficient enough

then gain must be made to have share buyback program that have been announced.

Actual share buyback program doesnt have that much of impact after the

announcement process is end. But it has been suggested that market may not be that

much responsive to the repurchasing announcements and the commitment of the

company is to actually make the repurchasing process. That is why there are lots of

long term effects after the buyback process of the shares. Announcement of the sharebuyback programs in the meantime does help to increase the share prices of the

company. It is the matter of consideration as when share buyback activities are needed

to be carried out. In the meantime Net Asset Value of the remaining shares will increase

from the original value. In the same period the absence of other kind of effects and

increase in the NAV as actual buyback activity will help to return the pre-announcement

level. Thus the overall effect of share buyback activity will lead into the discount as

suggestion has been given to increase the Net Asset value of the shares. Furthermore it

has been one of the options for the investment companies to use share buyback options

to give reduction in the discount of the Net Asset Value. So, the balancing of the supply

and demand of the shares of the market will influence the market liquidity and it will also

play as one of the relevant role for the investment companies. The views have been

there in testing the perceived importance of institutional disinvestment. did note that

potentially there have been two of the different types of liquidity which will be resulting

from the share buyback activities. also noted that the liquidity position of the company


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remain not confirmed as the share buyback activity enacted before. As companies need

to cancel the share buyback activity right after that. In addition they are unable to affect

the supply and demand levels in turn of liquidity in long term frame. Since the year of

December 2003 all listed companies have been given permission to hold off their

shares in the market for re-issuance and regulation. So Demand and Supply

management has been one of the possible activities for the period and it is covered in

this kind of research.

Capital market based study process relies on public available information for assessing

the corporate and investor behavior. It has generally had the access for enhancing the

shareholders value and also there needs to have specific reasons for this kind of

programs. It might affect the changes in the shareholders value. In linking with the

research based on the US perspectives examined that Share buyback activity of UK

gave the abnormal return to the shareholders in comparison to the US shareholders.

suggested that those companies which announced the buyback activity will outperform

the whole market by the average of the 13% and up to the figure of 21% for the

following months of activity. On the other hand there has been different study that is

made for considering the share buyback activities for the long time situations. It would

probably reverse the conclusion figure and this might help to report overall the badperformance in the share price. Even the share prices of the buyback company will rise

by an average of 8.2% per annum, in the case of market and dividend paying

companies it will rise by 10.3% and 12.7% consecutively


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On the other hand addressing the specific motivation and explanations will give the in

detail discussion. did give several of the discussion on this subject in addition they

stated that economic role of the share buyback activity has been one of the main for the

understanding whole of this main concept. Several empirical studies did discuss on the

share buyback activities for influencing the corporate gearing levels . Even they

reported that Earnings per share levels fall short of the analysts forecasts. They might

experience dilutive effects from different new shares issued in the market. So this kind

of consensus is absent from the explanation and other motivations it helps in returningexcessive cash flows and in turn it avoids whole problems of overinvestment process. It

signals managements confidence for the future earnings potential. Share buyback

activity does also undervalue the market. It also helps in reducing the tax charges in the

UK. Even the traditional dividend payments are replaced in the payment process. In the

relation to the free cash flow in the company, all reported that all share buyback

companies do exhibit the free cash flow activities as all these activities are linked to the

abnormal returns from the market.

In the year of 1999, financial executives of the research foundations have found that

there have had several factors those were affecting the share buyback activity of the

companies. Even one distinguished author did research on the share buyback activities

of 200 companies. In that study the researchers did identify the motivations for the

share buyback activities. As this share buyback activity does help to increase the prices


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of the shares in the market. In the end it alters the capital structure of the bank. This

proved to be one of the substitutes for the dividend payments. did suggest that share

buyback activity has been portrayed as one of the incredible, valuable. On the same

side management cant furnish wrong information to the investors by manipulating the

share prices. However they suggested that dividends and share buyback has been

almost similar sort of activity but they do play different roles in the market. In the

information of these authors study dividend appeared to be carrying one of the

perceived signaling roles. Also dividends appeared to be one of the important

significant roles by the management to convey mana gements assessment in theprospects of the firms. did highlight about the share buyback activity that it wont be a

costly one for the companies as they have to pay a large premium to the shareholders

in the process. indicated that two of the important points are needed to keep in mind

always for the share buyback activities. One is to check the increasing share prices of

the company and the second one is the share buyback activity that will help in

conveying information to the market which is very positive for the prospects of the

company. Dann also did describe that expected increasing earnings per share do help

in the share buyback activity. Past evidences suggested that all the investors are not

that much fool as the relative transparent financial adjustments which lack some kind of

substances can affect them. Even Dann argued that earnings per shares influence on

the share buyback activity have simply been a financial illusion. argued that research

has indicated that information which has been conveyed by the share buyback activity

are important from the prospective of the company. Share buyback in the bargaining

prices would benefit long term shareholders of the bank.


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The effect of share buyback announcements has several effects on the share prices of

the companys. argued that information that has been conv eyed to the share buyback

announcement have at least two kind of ways. The most important one does reflect

positive economic conditions that are faced by whole industry. do refer that positive

effects of the announcements have contagious effect on the industry. However the

information might have reflected a change in the competitive balance within the place of

the industry. assessed a study that would test share prices fluctuation of the rival firms.

So the authors did research on the increasing share buyback activities of the firms.Even most of the researcher did say that share buyback activity is firm specific. Findings

have been contrasted in very efficient manner and in addition even the researchers

previous to Firth did show similar positive reaction that of the Firth. attempted their

research on the contrasting evidence by some of the examiner for distributing the cash

to the shareholders in the share market for share buyback program. did indicate that

open market announcements associated with the sustained price and the increase is

around 3%, However Erwin and Miller did indicate that there hasnt been that much of

research for the investigation of the increasing investors for revising the expectations of

the rival firms in the same sort of industry. In addition both of them undertaken the

research that would help to examine the intra-industry effects that has been associated

with the open market share buyback activity.

In past there were several authors and they did believe on the institutional theory. Even

the authors like did propose that organizations do adopt formal policies, planning


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program for socially sanctioned purposes. Even the organizations internal structures

have been affected by the decoupling in the institutional theories. There has been

several researchers which has been devoted to the phenomenon of the organizational

decoupling In recent past and thoroughly researched on actual hiring and promotional

process. In another research study related to the share buyback activity organizations

adopted new program and policies for this kind of structures. researched on

environmental and organizational factors that does lead to firms adoption of new

methods in the environmental and other organizational factors. said that institutional

uncertainty might have lead to imitate the acquisition strategies of all the other firms.However there has been research on how conflicting the institutional demand may lead

to the organization for adopting conflicting organizational practices told that institutional

processes can be developed and tested by theoretical explanation by some firms those

have adopted a different types of policy in the response of external pressures. Stock

repurchasing program has been non cash dividend program for the stockholders and it

also involves an adjustment for financing mix. A strong share buyback program has

been referred as written policy which is approved by the board of directors In the case

of institutional sense it has been considered as one of the important structural planning

and the procedures are needed to be adopted by the standardized firms The plans of

these researchers were to furnish the rational for the research and do help to meet the

corporate objectives.


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The view of the investors in conjunction with the dividend substitution has broadly

mirrored those activities of the financial managers. Though there might be distinct

variation in the strength of different types of views those has been expressed. In

addit ion investors like the financial managers havent seen the share buyback program

as one of the substitute for the regular dividend payments programs. Their views have

been very much important in the perspectives of the other financial managers.

Markets often exaggerate their response when one is cutting a dividend or passing on

it in full amount. So in this case share buyback have become the event in terms of theshareholders approval and will use its as one of the regular and consistent, recurring,

sta ble trend kind.

Decoupling of the share buyback activity planning and the subsequent implementation

reflect the efforts made by the organizational leaders for advancing in the political

interests and it also proves some of the aspects of the organization. Decoupling could

also relieve different types of tension those are created by the external pressures for

changing the desires or avoiding the disruptions of the existing relationships in the

organization and it does include the different types of disruptions for existing

relationships in the prestigious organization that includes the power relations. suggested

that the firms are mostly important for pressurizing the tactics such as decoupling to the

external pressures and it is done by using the tactics such as decoupling for the extent

of checking the external pressures for changing the main format. These are inconsistent

with keeping in tag with the internal goals. In addition external constituents firms do


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pressure a lot for adopting a policy which does threaten for discretion of organizational

actors, those actors might be in the favor of the symbolic types of response and it

generally involves separating types of activities for the organization from the formal

adopted policy. Thus it would enable the corporate leaders for pressurizing the

discretion over on the allocation of resources. On the other hand offered that the

specific organization does often offer unwillingness for incurring the costs for the

managerial control by implementing formal adopted plans. On the other hand in the

case of the buyback program the top managers of the company might decouple actual

financial investments which would help in formal adopted approach for the buybackplanning for preserving the free cash flow for them and it would in addition maintain all

managerial ways of discretion on locating the corporate resources. did suggest that the

managers need to look for the recent cash flow for the increase of in the size of the

companies which they run. It would help in the leading higher executive compensation

program in the social types of prominence and in addition public prestige. There are lots

of empirical studies those are based on the free cash flows and are associated to the

increasing nature of the executive compensation and it would increase greater

consumption by the top executives and it would definitely give some positive decisions

on acquisition and it would appear as promoting the corporate stability at the expense of

the maximizing the wealth of the shareholders. This would conversely show some more

influence on the top management, directors and it would help them to control and

monitoring function of the shareholders interest. The empirical research has shown that

the boards do exercise a higher degree of the power for independent body of the

government. Then they become more vigilant for the decisions making skills for the


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interest of the shareholders. In addition there are the influences of the boards which do

link the share buyback program. In the effect for congruence between the goals of

different constituent (institutional investors) and also the goals in between the powerful

actors in this specific organization would help to increase the different likelihood of the

acquiescence for controlling the external pressure. The boards exercised different

investment opportunities and it would influence the financial policies, CEO of the

company might be less likely to decouple the actual investment practices for the

formally adopted types of plans and the share buyback program does represent as

substantive commitment for the firm and also for its shareholders( By actually investingon the firms). In addition all independent boards are more likely for distributing the cash

to investors in preventing the managers in reserving the funds for the diversification,

other actions those are completely related to the actions which dont advance

shareholders objectives. It is thus important for the CEO power for helping in

determination whether the firms do decouple the repurchase plans from the practice; on

the other hand the theoretical arguments do suggest that all powerful actors do mediate

on the institutional effects. These kinds of views are consistent with sundry types of

practices based on the neo-institutional literatures as all the several theorists began

emphasized on different potential roles of the individual volition in congruence with

some institutional effects. If view could be drawn then we would be able to see that

they matched the view of the other researcher who did suggest that all different types of

organizations and also the leaders of that particular organization not necessarily

conform towards any kind of external pressures that would be adopted by the policies or

structures. On the other hand they are only taken for granted because did note that all


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the institutional theories could accommodate all interest seeking, active behavior and it

would also helped in the checking the responses to this kind of the institutional desires

and pressures. and in addition suggested that found evidence are consistent enough for

creating any sort powerful corporate types of actors in stimulating the development of

different institutional processes which described as decoupling and there are social

appropriate types of corporate languages. So, our theoretical language do build on the

symbolic management and proposing all political differences that could help in the

explanation of the differences in the organizations respond towards different

environmental pressures for managing the accountability. Theoretical arguments whichregard the effect of the CEO power over the board on the symbolic vs substantive

nature of the share buyback programs and it suggested different relevant hypothesis

based on this share buyback program.

The external factors would provide that additional insights into the institutional

decoupling. On the other hand from the perspectives of the different types of research,

an economic action which is socially situated and that cant be explained by the

reference that would be given to the individual for political motives. Macro-institutional

pressures wont only determine the action of the organizational policies and it would

help in the organizations immediate social network. So thus to respond to all external

pressures of the greater corporate accountability to different shareholders and also to

the top managers and directors those who does influence all information those are


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obtained from the different kind of network for the leaders of other firms. On the other

hand side the proper indication for the social networking site does relate to the leaders

of the large firms and on the other hand it would overlap the board memberships. The

growing body of the thorough research did examine different consequence for

overlapping the board ties for the purpose of checking the organizational behavior.

Several studies in this prescribed program are associated to the testing of different

mechanisms in resolving all raising uncertainties for the implication of adopting all

organizational practices, programs and structures.. In the discussion of how to interlock

ties before the adopters may increase all the likelihood for adopting defenses takeoveras we can see that did emphasize on the value of the direct communication in between

the directors and the managers and it would raise the awareness for the potential

benefits of the adoption and need to know how to avoid all potential drawbacks from the

adoptions. Thus it would provide all mechanisms for different kinds of vicarious learning.

There might be some studies and it is not directly considered as the influence for the

inter organizational ties and it helped to check what extent of the formal study would

expect the process of decoupling. On the other hand interlock ties of firms would

engage in different symbolic decoupling of the share buyback program and it would

raise the awareness on the symbolic and potential benefits of the decoupling policies of

government and it would provide mechanisms for the learning of different symbolic

actions of the institutional pressure.


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When the network does provide one ties for the managers, they also do provide

symbolic decoupling, it might also be the reason of more direct types of learning which

would rather help in increasing the likelihood of the observing share buyback programs.

On the other hand a firms experience of the decoupling does help in formal adoption of

the program from the practices which might affect the probability in future decoupling. In

viewing the scarcity of literatures and also its antecedents would perhaps surprise that

there might be having some relevant discussion on the decoupling as one of the

repeated practices. did speculate that the firms might be engaged in different types of

symbolic management those are repeatedly across the multiple types of issues. On theother hand a central tenet on the learning literatures of the organization is that different

types of actions associated with positive outcomes and it would definitely going to be

repeated, even when there is only one instance of the behaviors did find that strong

evidence which firms experienced in positive share market reactions are the incentives

plans and it is going to be implemented and there is some specific evidence which

would help in enjoying positive reactions from the market and it would decouple the

share buyback programs. So based on this kind of investment the experience of the

decoupling is going to be encoded with organizational memory and the routines and it

would definitely invoke the process of the adoption in order to maintain the governance

policies in the coming future.

On the other hand all theoretical concepts do suggest that influence of the decouplingwould help in building some effective awareness among the decoupling actions and it is

definitely going to be moderated by the power of the CEO and Board relationship. Next

to that firms direct relations with the symbolic decoupling do serve as one of the


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different precedence and it would help in reducing the uncertainty among all the top

managers on the issue of the symbolic actions that is further related to the political

interest. Such "selective learning" from experience dovetails with recent theoretical

developments on organizational routines and learning, which suggest that reliance on

routines that have been developed from experience is contingent on the political

interests and identities of powerful actors or groups in the organization those are

completely related to the actions which dont advance shareholders objectives. It is thus

important for the CEO power for helping in determination whether the firms do decouple

the repurchase plans from the practice; on the other hand the theoretical arguments dosuggest that all powerful actors do mediate on the institutional effects. These kinds of

views are consistent with sundry types of practices based on the neo-institutional

literatures as all the several theorists began emphasized on different potential roles of

the individual volition in congruence with some institutional effects. If view could be

drawn then we would be able to see that they matched the view of the other researcher

who did suggest that all different types of organizations and also the leaders of that

particular organization not necessarily conform towards any kind of external pressures

that would be adopted by the policies or structures. On the other hand they are only

taken for granted because did note that all the institutional theories could accommodate

all interest seeking, active behavior and it would also helped in the checking the

responses to this kind of the institutional desires and pressures. and in addition

suggested that found evidence are consistent enough for creating any sort powerful

corporate types of actors in stimulating the development of different institutional

processes which described as decoupling and there are social appropriate types of


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corporate languages. So, our theoretical language do build on the symbolic

management and proposing all political differences that could help in the explanation of

the differences in the organizations respond towards different environmental pressures

for managing the accountability. Theoretical arguments which regard the

In this chapter Researcher described some activities of share buyback activities those

took place throughout the world in different circumstances. It proved that the Share

buyback activity is very essential and effective for the companys to return back extra

cash to its shareholders. Companies are very much concerned about the share buyback

activities and they are applying it whenever they need this. Now After the completion of

discussing the literatures it is now important for the researcher to pen on the next

important chapter that is Research methodology.


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In the preceding chapter researcher successfully described all the conceptual

clarification regarding the methodology. In addition researcher put every single effort in

providing every single step for this research. Even researcher was very much

successful in applying the process that was identified by. This author gave every single

analysis of the research. Even the author was successful in citing several of the

rationales for this research process. Precisely the task is huge to carry out every nook

and bit for the research process. Brief descriptions of the aims and objectives were

given by the researcher, this helped the researcher to meet all the perspectives and

need for this research. Researcher discussed all significant reasons for choosing every

particular method for this research study. Research philosophy was identified properly

by going through few of the phenomenological areas. Researcher was also successful

in selecting a particular research strategy, data collection method for this research

process.

Research was carried out with the influence of the research philosophys one school of

thought. Phenomenologist paradigm was described by the authors named. As the


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reason behind this is that human behavior has been considered as one of the

subsumed measure of numerical classification. So the selection of the

phenomenological research philosophical process emerged as one of the main

conception and it had been investigated that the share buyback activity of UK was one

of the complex matter for the research and it would help the positivist researcher for

building the philosophy and it anchors some of the generalized laws. Even it cant be

easily condensed within the ambient reasoning as it appears to be lackadaisical in the

place of the human element.

In the philosophical stance of the positivist research it has been empirical and anti-

speculative one .In addition it concentrates on the perceptible phenomenon and there

has been some ordered relationship which helps to establish by the process of empirical

research. So when a researcher plans to apply for position of the research that

investigates the issues of the organizations impact on the host communities. It was also

appear to be one out of context considering some of the important fact that the issue

needs to be investigated with relative and approach based ways. In addition it appeared

to the researcher in some of the important context but it might be possible that the

researcher will be able to establish the concept of Interpretivisms with empirical ways

.On the other hand the proper formation of the generalized laws that constitutes one of

the prime characteristics of the positivist paradigm would lead into the loss of valuable

information that might have necessitated the loss of valuable data. Precisely the

research have had direct bearing on the context of the subjective experience of the

particular filed that phenomenological field needs to embraces. in conjunction to that

described the reality of the given educational setting and it would seen it as fixed and a


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stable entity but also as a type of variables which is discerned by multiple forms of

understanding. In the literatures lots of philosophical assumptions was revealed for

shedding the light on the conduct of the researcher and it would precisely underpin the

research philosophy that is employed by the researcher.

Out of the all important paradigms of research, researcher has selected interpretivists

paradigms for this research process. As data that has been analyzed are only

qualitative. Qualitative data are mostly analyzed by the Interpretivists approach. Even

the choice of inductive method over deductive methods has been justified. As the

deductive approach follows the positivist paradigm. Interpretivists approach is more

effective for analyzing the data those were collected from the Semi-Structured

interviews and closed ended questionnaires

If we see the essence of this section then we would find that it is important to determine

the means of conducting the research methods that was used. on this very issue did

note that research approach could easily be formulated from what does take place

within the form of context. The reason of this is that the researcher was very much in

concern for choosing the right approach which would be pertinent for sieving out one of

the data that would definitely benefit in answering the research questions. There are two

types of research approach one is quantitative and another one is qualitative.Quantitative research approach is known as deductive research approach. In the same

way qualitative research approach is known as inductive approach did say that

deductive approach is similar to the scientific approach. Inductive approach is the


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process in gaining an understanding of the meanings which led event to attach to the

research context.

By considering all above important reasons researchers have been very much efficient

in applying qualitative methods for this research process. This is basically based on the

similar sort of approach that begins with specific observation and it builds towards the

general patterns. In this context of this qualitative research data were collected by

interviewing the sample of managers of the HSBC bank. Even the shareholders and

employees were involved in the close ended questionnaires process. So this helped the

researcher to comprehend the expectations and perceptions of the company in the

share buyback activity. Thus it would reveal the reason behind the share buyback

activity. The conclusions that has been drawn through this approach will be efficient for

the researchers share buyback activity, thus it would influence the business

performance of the company. Precisely telling this research process was complex and

specific. These types of research approach are totally content specific and would

accommodate all human elements. It is also important to analyze the event within the

whole context. This would also help to entail the collection of data which would help for

preceding the formulation of the theory. Thus it draws the choice and appropriateness in

adopting the inductive approach. So there wont be any kind of context for stating the

inductive approach. It also emerged from the important nature of this topic and has

been researched and even research philosophy was employed.

It assists in helping an exploratory research design.


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Researchers have to deal with only unstructured data, and then afterwards they

can arrange those data.

Qualitative research does follow important evidence in the research reports.

Small group interviews cant be taken place in the qualitative research.

In comparison to quantitative research, the data those are gathered are less

structured.

Some researcher believe that they have lack of factual data based on validity

Research strategy in general is one of the important subset of the research process.

Researcher in general to let it know the readers in which particular process he intends

in collecting data as it would help the researcher in meeting the research aims and

objectives. Research Philosophy does describe one of the exploratory type and nature

of the research; In addition it involves one of the important aspects of the bounded

research. Researcher selected case study strategy in this very research process, it

would help in gaining an in depth understanding and focus in the research. described iteffectively and even re-affirmed by. A case study strategy of the research involves one

of the important investigations of contemporary phenomenon of research in real life

context. Also researcher has been very much successful in using multiple sources of

evidence. Case study strategy also helps in offering important subjects in depth and it

also lends credence for choosing the appropriate strategy for the understanding of the

research process

In addition as there are strengths for the case study, it would also need for the scholars

to ask for the credibility in this research process. did question about selecting evidence

and support in choosing the explanation in finding the evidence did depict and identify


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that the influence of the etic (Researchers value) and emic(Researched things value).

Main implication of this kind of research is that content analysis does convert the

qualitative data into the quantitative data. Even the contextual factor and unique nature

would always help in the study of research thing. Next to that did also describe that

case study strategy is time consuming but on the contrary to that it supplied massive

information to the researcher those are needed to be analyzed by enhancing the

tendency of biasness and selectivity. On the other hand the enumerated demerits of this

case study strategy are important in considering the precise nature of the research. In

researchers perception the case study strategy would help in shedding moreperceptions in issuing the investigation. For substantiating the real fact the intention of

the researcher was for well justifying the process by examining some important

alternative research strategy.

Grounded theory research strategy has been used and mostly accepted one in the

commonly used qualitative methods. For this Research perspectives Researcher did

find it inappropriate for the effective results in the concern of this research process. The

first one is identified by as the grounded theory for systematic procedures in finding the

research which would help to constitute theoretical process under the investigation of

the set of numbers, groups related themes)

Ethnography is at all writing about the people. In common sense it does includes the

study and group of people in the purpose of socio-cultural activity and patterns.

Ethnographic research does depict as one of the important one for collection of data on

the basis of interpretation. In the process of ethnography this could easily be seen as

one of the important one for the science of cultural descriptionResearcher rejected this


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research strategy as the prime methods for the data collection of this method is

completely based on the observation of the participants and also of the informant

interviews

This is one of the prime methods for collecting data of qualitative categories. In this

process two or more people are involved in a purposeful discussion. It is rightly based

on the description given by. This could easily assist the gathering of the valid data and

the interviews method could easily be the Structured, Semi-Structured, or may be

Unstructured. In the structured interview process the pre determined questionnaires are

used. On the other hand Semi-structured interview method is informal. In this very

research process the researcher was more than wise to use the Semi-Structured

interviews methods for gathering the data from the managers of the HSBC bank. One of

the important aspects of this research is that the researcher have the freedom to ask

any kind of questions but that should be based on the research criterions.

After selecting the particular method of the interview the questionnaires design were

established. The Semi-structure interview questions were directed towards the criterions

of the research questions. In addition to that the researcher employed a purposive

approach based on the sampling criterions. Letters of request were sent to the

interviewees and the evidence of that has been attached to this research study. Evenone of the other important thing was that constructed interviews questions needed to

undergo a pilot study before undergoing the interview session.These all were built upon

the share buyback activities criterions. Whatever sample were applicable to the


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research process were selected by proper justification. Interviews are always the

explanation of an important study process. Even the mangers of the bank who were

involved in this important process of the interviews of share buyback activities were very

much active and vibrant throughout the research process.

Lists of questionnaires are set up in order to set up the research topic.

Even further necessary questions can be added and even questions can easily

be omitted.

It helps to understand the relationship in between the variables.

Even the researcher has the ground to enter into another area related to the

topic.

Proper lack of standardization is one of the main concerns of this process.

Even the issues of trust and credibility are one of the major concerning things.

Time consumption by this research method is also matter of consideration.

It is one of the important methods of collecting data. In the research literatures there

were various options which were related to the definition. Precisely the process includes

every single data collection techniques in which the person are asked for providing

similar set of questions in predetermined way.Questionnaires are generally of two types.

Those are Close ended questionnaires and Open ended questionnaires. However for

this important research researcher did select the close ended questionnaires of same

sort of questions and answers from the employees and shareholders of the bank.


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In the same way of the semi-structured interviews, close ended questionnaires had

some sort of questionnaires statements those were helpful in this very topic of share

buyback activity. Interviews issues have been investigated with proper envelop. Even

the requirements of host communities have been well discussed. Next to that company

did embrace the demonstration of share buyback activities and even proper

demonstration has been made for this share buyback activities. Even the method has

been adopted by keeping in mind about the important criterions of the organizations and

the research questions have been covered with proper specification. Even the

questionnaires were kept at short, clear and easy for answering different kinds ofrespondents. In specifically 14 close ended questionnaires have been administered by

doing some sampling approach. So the knowledge for this research process was

applied properly.

It is one of the best techniques for describing the descriptive and explanatory

research.

Even the descriptive research uses opinion and attitudes for questionnaires for

the organizational practices.

It also helps to disclose a precise answer for the research process.

Some authors did find the method as harder and most time taking.

Questionnaires method has lack of reliability.

The most important criterions of this kind of research process is that in both interviews

and in enquiry where the researcher is expecting feedbacks to give it to the third party


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would be perfect to seek the consent and confidence of others.Respondents are

successful in giving the confidentiality of the statements they are providing. Main benefit

of this kind of consideration is that the participant can easily be more open and would

be able to discuss the issues more deeply. Even the researcher have been well

organized to describe the main reason for this research study that made the

respondents to become more open and they were able to describe the issues in more

details. In addition to that where age has been mentioned the researcher did receive the

consent of the respondents before revealing that. Even the participants were assured

that there participants are only voluntarily and more importantly their name wont berevealed in any sort of areas like data analysis or in informal discussion. This important

practice was in conjuncture with the recommendations those were given by and also the

main views of the participants were consulted and their consents have been sought

throughout this research process.

Sampling and the interpretation of the sampling process are fundamental concept for

any research process. Leaving few cases, most of the research are conducted by the

means of sampling process. Even on that vary basis generalizations are applicable to

some number of populations from which the samples are obtained. The main prime

areas of the sampling has been quiet evident and has been derived from the works of.

Even when the researchers did note that it would be unrealistic for surveying the whole

population, he declared that time limit and budget were not that much in amount. did

suggest that sampling is needed to be viewed as one of the important portions of the

populations and in the process universe is the main representative of that populations.


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In other ways sampling has been the process of the selection of sufficient number of

populations for representing the characteristics of the whole population

All these important efforts were made to ensure that information that has been gathered

are under the investigation of some affairs. In addition to that sample of the questions

have been kept into 13 questions itself. Even after that random sampling was used for

the collected data and different types of shareholders were involved in this process. The

important concept of applying this process is that it is totally unbiased and also the

prime important process is that each data those have been collected were important for

this research.

In this Case study Research Process researcher planned to implement two samples.

One sample was for the employees and shareholders, another sample was for

managers. In the case of employees and shareholders researchers sent the close

ended questionnaires sample to 300 employees and shareholders. Out of that only 10%

have responded to that. In addition researcher took the Semi-Structure interviews of 3

managers of finance department of HSBC bank. These two make an ideal combination

for the sample population

The real essence of the methodology that was described in this research cant be over

emphasized. did note that there are several traditional approaches of this research that

needed educational experience and even the qualitative mode of the inquiry are basedon the phenomenological research philosophy and also it was successfully

characterized by the methodological eclecticism. This was completely based on

hypothesis free orientation. It was also an implicit acceptance in natural scheme of


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things. Next to that methodology does play an important role in allowing researcher to

have an insiders view in the matter understudy. Most remarkable thing in the

methodology was that it offered researcher one of the prime opportunities for capturing

what people say and do as a product and also how they interpret the complexity of the

world. It also helped for understanding the events from the viewpoint of the participants.

Even two of the authors describe that emerging form of the research has been

considerably relevant to what has been found over here. As for mentioning the matter of

understudy social fact draws context based conclusions which helps to point out to new

policies and also to educational decisions instead of toward the generalizations.

Problems related to the validity and reliability were one of the major demerits of this

study. Reason behind this process is that the data and origin seems to be difficult in

applying conventional reliability and validity standard. did observe that qualitative

methodology, context, situations and interactions would be hard to replicate in any

extent and also there are not any single generalization those would be needed for

making it in confidence to the wider study context areas.

Limitations in time had been one of the major drawbacks of this research process. Even

the researcher didnt spend a considerable amount of time in settings of the research as

this could have helped him to examine holistic and aggregate research process. noted

that participant-observant relationship would prove to be one of the vital one in the

presence of the researchs research process. It would have a huge significant effect on

the subject of the case study research. On the other hand these problems would

illustrate deficiencies in drawing the importance of the research.


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In this very chapter researcher successfully implemented different aspects of the

research. Researcher was well equipped in reviewing all possible methods for

influencing this research process. Even the researcher was successful in highlighting

the influence of the research methodology that was followed. Even rational and

justifications were given for choosing each and every single method. Researcher was

prudent enough to describe the research philosophy, data collection, ethical

consideration, research approach and strategy. Even the strengths, limitations of

methodology were properly examined. On the other hand researcher is going to focus

on the next chapter based on the gathered data analysis and findings.

The preceding chapter discussed about the several areas of the data collection thoseare completely linked to the research areas. Research overview and conceptual

clarifications were made throughout extant review of literatures and research

methodologies. So in this very chapter an analysis was needed to be done with


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collected data. Before moving to the data analysis chapter there is data analytical

methods that was needed to be employed in this research understudy. At last by

considering the link up with the dictates of the organizational structure of the research

study, this very chapter also proved its imperativeness for representing the means

through which the researcher got success for collecting the data and even the samples

were effectively used.

There is one kind of data that has been collected in this research process. Researcher

was very much prudent in selecting this kind of qualitative methods. Qualitative data

was analyzed by the process of thematic analysis.

For the consideration of this framework that was identified by. It has been one of the

systematic and disciplined methods and also it is very much essential for detecting and

defining, explaining and exploring all these issues those are basic tenets of the

qualitative research. In addition the researcher needed to review all the data that were

collected without any form of partial and selective analytical method. It has been

deemed as one of the main appropriate methods in the consideration of capability and

flexibility. This definitely facilitates in-depth illustration and explanation of different kind

of materials those were invariably unstructured and cumbersome. It was deeply

investigated by the researcher to have in-depth Semi-Structured interviews and also to

analyse close ended questionnaires. The sources were discussed in detailed and there

is some form of coherency in the structure of the firms. As there was no reason for the

researcher to build any kind of hypothesis and theories. So thus this case became one

of the imperative to describe every single aspect of the Semi-Structured interviews in


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details. There are important concern for the discussion of the key issues of themes

those are completely based on the collected data.

Adoption of the thematic form of analysis was off to more sense and researcher needed

some form of capability for possible drawing upon main issues. These issues are

originally informed by some of the important research questions and are also related to

the research aims and objectives. Even the Semi-Structured interviews and Close

ended questionnaires were used with some of the important topic guide. On the other

hand it also helped in focusing on some of emergent issues in the interviews. On the

other hand thematic analysis were described by the significant work of the. This kind of

framework helped the researcher for considering and reworking collected data and

ideas. The authors did say about the five of the important systematic stages for the

analytical process and it includes the familiarization process for the identification of

thematic framework.

Few of the authors did adopt this method in past without any clear form of analysis and

guidelines this kind of scenario do make the method uncritical for the researcher. So

there is a possibility as lack of detail guidance will affect this form of analysis. For

minimizing the effect of it the researcher linked it to the possible detailed stages within

the research process. Even the researcher thought about the possibility of the potential

pitfall in the application process.

Out of all the analytical tools, thematic analysis was examined by the researcher only as

he found it most applicable for the analysis of this perspective research. Detail

investigation of the analytical method with the use of qualitative data is successfully


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tackled by the thematic form of analysis. But on the other hand grounded theory and

narrative analysis were not matched with the fact of this research process. Smith and

did discuss the narrative form of analysis and it is completely attached to the

phenomenological epistemology. It also gives some form of experience and subjectivity

in primacy process. It is most of the eliciting one in great details of p eoples

understanding of the research questions. On the other hand it was found out that

themes within the data those were adopted by the presence of the case study strategy

are applicable to this particular research process of the researcher. In addition all the

issues those were investigated properly and even the researcher didnt haveconsiderable time period for this type of research process and interview

Regarding the facts of the other methods researcher was prudent enough to discuss all

the methods including the grounded theory. did note that about segmenting all data. On

the other hand few occasion researchers felt problems in revealing all the important

expressions, behavioral and gestures of the participants. But this kind of research

process is mainly helpful in building and generating theory of which it has no intention

for this type of research process.

One of the sample size of the Employees and Shareholders were 300, but only 10% of

the respondent sent their feedback. For the Semi-Structured interviews of Finance

department managers, the sample size was 3.

Shares are bought back because management believes shares of the company

have been undervalued


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Strongly Agree

1

Agree

2

No View

3

Disagree

4

Strongly

disagree

5

12(40%) 6(20%) 3(10%) 3(10%) 6(20%)

In this above statement it was seen that there were around 40% of the respondent did

give positive signal to the above statement. Around 20% of the respondents agreed with

the above statement. Only 10% of the respondents had no view for the above

statement. On the other hand 10% of the respondents disagreed with the fact. Another

20% strongly disagreed with the fact.

0%

5%

10%

15%

20%

25%

30%

35%

40%40%

20%

10% 10%

20%

Comparison of Statements


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In these perspectives it can be seen that company shares sometime went on to become

very low in the competitive market. Even the recent economic situations like recessions

did help to decrease the value of the share in the stock market. If the shares are bought

back again by the company then definitely the share price of the company would soar

again. This would help to save the company.

Shar es are repurchased, because share prices recently have lagged on the

market

Strongly Agree

1

Agree

2

No View

3

Disagree

4

Strongly

disagree

5

9(30%) 12(40%) 3(10%) 5(17%) 1(3%)


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In this above perspective it was seen that 30% of the respondents strongly agreed with

the fact. Even another 40% of the respondents agreed with the above statement. 10%

of the respondent couldnt show their view on this above statement. In addition 17% of

the respondents disagreed with the issue in the statement and another 3% of the

respondents strongly disagreed with the fact.

If we see the perspectives of the share market in the recent concluded recession then

we would be able to see that recession has affected all developed economies of the

world. So there is definite concern of the companys corporate board to take some

strong decision to find a solution for the above situation. So, companys corporate board

planned to buy back the shares in the competitive market.

Shares of HSBC bank are repurchased because HSBC doesnt have sufficient

investment opportunities for the use of their cash pile

0%

5%

10%

15%

20%

25%

30%

35%

40%

30%

40%

10%

17%

3%Comparison of Statements


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Strongly Agree

1

Agree

2

No View

3

Disagree

4

Strongly

disagree

5

15(50%) 6(20%) 3(10%) 3(10%) 3(10%)

In this above Statement Companys 50% of the respondent and 20% of the respondent

strongly agreed and agreed with the above statement consecutively. Around 10% of the

respondents didnt have any kind of view in the above statement. 10% of the

respondents disagreed with the statement and another 10% strongly disagreed with the

statement.

0%

10%

20%

30%

40%

50%50%

20%

10% 10% 10%Comparison of Statements


50/86

As from the corporate boards meetings did show that there have been lacking in the

investment opportunities. So the board of the company did show their interest in buy

back the shares. It would also help in increasing the valuation of the company; In

addition shareholders of the company would also get benefit from this, as they could

easily get back those extra cash from the management.

Shares are bought back in order to reduce the number of shareholders

Strongly Agree

1

Agree

2

No View

3

Disagree

4

Strongly

disagree

5

0(0%) 0(0%) 3(10%) 12(40%) 15(50%)

0%5%

10%15%20%25%30%35%40%45%50%

0% 0%

10%

40%

50%



51/86

In the above statement it was seen that 40% and 50% of the respondents disagreed

and completely disagreed with the statement respectively. Another 10% couldnt show

their view on that statement. It does mean that all the employees and shareholders had

shown their negative concern on the above statement.

In this perspective the researchers evaluation was that there hadnt been any kind of

discrepancy among the companys corporate board and shareholders. The relationship

was strong as usual. So this would help to keep the integrity of the company. HSBC

would be able prospect properly in the competitive market. In addition they always keep

strong relations with their shareholders.

Shares are bought back in order to attain a capital optimal structure

Strongly Agree

1

Agree

2

No View

3

Disagree

4

Strongly

disagree

5

9(30%) 12(40%) 3(10%) 3(10%) 3(10%)


52/86

On the concern of the above statement it is seen that 30% of the respondents strongly

agreed with the main themes of the above statement. Another 40% of the respondents

agreed with the main concern of the statement. Only 10% of the respondents had no

view. 10% of the respondents disagreed with the above statement and another 10% of

the respondents completely disagreed with the statement.

It proved that Companys corporate board wanted to some of the strong decision to give

strong optimal structure to the company. Even the shareholders and employees showed

their affirmation on the above statement. This would definitely help the company in the

nearest future. As for any businesses it would be good to increase its level of gearing in

order for gaining an optimal capital structure. On moving to the share buyback program

capital structure of any bank could easily be shifted towards the favor of debt.

0%

5%

10%

15%

20%

25%

30%

35%

40%

30%

40%

10% 10% 10%



53/86

Shares are bought back in order to improve the earnings per share of the

company

Strongly Agree

1

Agree

2

No View

3

Disagree

4

Strongly

disagree

5

9(30%) 9(30%) 3(10%) 3(10%) 6(20%)


54/86

In these perspectives of the above statement it was seen that the 30% of the

respondents statement were for the strongly agreed direction and another 30% of the

respondents agreed with the statement. 10% of the respondents couldnt show their

views on the above statement. On the other hand 10% of the respondents disagreed

with the main content of the statement. 20% of the respondents strongly disagreed withthe main content of the statement.

As definitely if the share prices of the company becomes higher then it would be

effective for the shareholders. They would be able to earn more earnings per share from

the company. In recent times due to the recession the share prices of the company got

affected badly, so it would be one of the important concerns for the company

management to buy back the shares. Share prices would be enhanced once the shares

are bought back again

turnitin final

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