The objective of this paper is to investigate whether the companies in India have been successful in achieving their motive of correcting the undervaluation and signaling to the market, the positive future prospects, by announcing the buy-back programs. By establishing relationship between buy-back announcements and stock price returns it is demonstrated that stocks experience significant positive returns and these positive returns can be attributed to signaling because of informational asymmetries between managers and investors.

Buy-back Announcements and Stock Price Behavior : An Empirical Study, positive, returns, buyback, signaling, announcements, companies, correcting, demonstrated, informational, investigate, investors, market, managers, motive, announcing, prospects, relationship, asymmetries, significant, attributed, stocks, undervaluation.