Actual Share Repurchases and Liquidity: Evidence from Thailand

International Research Journal of Finance and Economics, Issue 104, pp.42-50

9 Pages Posted: 30 Nov 2012 Last revised: 26 Apr 2017

See all articles by Yordying Thanatawee

Yordying Thanatawee

Burapha University - Burapha Business School

Date Written: January 1, 2013

Abstract

This paper examines the impacts of actual share repurchases on stock liquidity of companies listed on the Stock Exchange of Thailand (SET) over 2001-2010. The results show that bid-ask spreads are narrower, price impact is lower, and turnover is higher on repurchase days compared to those on non-repurchase days. In addition, the number of actual shares repurchased is found to be negatively related to bid-ask spreads and price impact, and positively related to turnover. Overall, the findings clearly indicate that actual share repurchases have positive impacts on stock liquidity.

Keywords: Share repurchases, liquidity, bid-ask spread, price impact, turnover, Thailand

JEL Classification: G14, G35

Suggested Citation

Thanatawee, Yordying, Actual Share Repurchases and Liquidity: Evidence from Thailand (January 1, 2013). International Research Journal of Finance and Economics, Issue 104, pp.42-50, Available at SSRN: https://ssrn.com/abstract=2182552 or http://dx.doi.org/10.2139/ssrn.2182552

Yordying Thanatawee (Contact Author)

Burapha University - Burapha Business School ( email )

169 Longhadbangsaen Road
Sansuk
Maung Chonburi, Chonburi 20131
Thailand

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