Optimal capital structure and share repurchases: a case study of Anglo American Plc

During 2006, AAL adopted and implemented its first share repurchase program, which continued up until its suspension in 2008. While management stated that share repurchases would only be done in the interest of shareholders, the repurchase program was disastrous for shareholder value. Management also stated that share repurchases provide the firm with flexibility regarding its capital structure. We investigated the capital structure of AAL for the years 2004 to 2012 from an optimal capital structure perspective. Using a CAPM approach, we find no evidence that AAL targeted or implemented a capital structure, which could be considered optimal.

Grantor dc:publisher.institution

Department of Finance and Tax

Year dc:date.issued

2016

Author dc:creator

• Chadderton, Marcus

Advisor dc:contributor.advisor

• Thurner, Thomas

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/20437

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/20437