11.05.2015 - Studies

Share repurchase programmes in DAX and MDAX

by Philipp Immenkötter

DAX and MDAX corporations make little use of the option to buy back their own shares. Almost all corporations are authorized to buy back their own shares, but this is to be understood as an "advance resolution" to give management flexibility in the allocation of capital. One cannot speak of a general intention to buy back shares.

In comparison to dividends, share buybacks play only a minor role in Germany and are carried out only occasionally. Since 2005, 85 % of the distributed capital has been paid in dividends, only 15 % through share buybacks.

Since 2005, around 13 % of the fiscal years of the DAX and MDAX groups feature share buybacks, which correspond on average to 3.9 % of their market capitalization. The financial crisis has drastically reduced both the volume and the number of buybacks.

Less than half of the DAX and MDAX groups, which have carried out significant share buybacks since 2005, have shown a good timing. On average, they bought back their own shares once or twice in periods of low prices.

Please note: This study is available in German only.

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