Short-term market effects of stock repurchases

Listed company stock repurchase, using the accumulation of surplus income funds or debt financing, through certain legal procedures and efficient approach, buy back the outstanding common stock which the company has issued. This paper takes A-share stocks from January 1,2008 to June 30, 2014 which have stock repurchase announcement as samples. Then use the event study method to test the short-term market effect of stock repurchase. Found that there is positive market effect before stock repurchases announcement, indicating occurrence of information leakage phenomenon, so market supervision and information disclosure mechanism need to be perfected.