1University of Gabes, Higher Institute of Management, Gabes, Tunisia
2Quantitative Methods, Faculty of Economics and Management, Mahdia, Tunisia
International Journal of Econometrics and Financial Management.
2020,
Vol. 8 No. 2, 61-65
DOI: 10.12691/ijefm-8-2-3
Copyright © 2020 Science and Education PublishingCite this paper: Foued Hamouda, Rabeb Riahi, Tarek Sadraoui. The Nexus between Buyback, Business Cycle, and Stock Market Volatility.
International Journal of Econometrics and Financial Management. 2020; 8(2):61-65. doi: 10.12691/ijefm-8-2-3.
Correspondence to: Tarek Sadraoui, Quantitative Methods, Faculty of Economics and Management, Mahdia, Tunisia. Email:
foued.hamouda@isg.rnu.tnAbstract
Financial crisis shows significant uncertainties in corporate financing conditions. This study draws on economic conditions toask if buyback programs are related to the business cycle and the stock market volatility. The results show both unidirectional and bidirectional causality between buyback, business cycle and stock market volatility. It also shows that financial crisis plays an important role, suggesting that firms increase their buyback depending on their economic condition.
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