Do Share Repurchases Distort Stock Prices? Evidence from the United States and Malaysia

Heavy share buyback years after the global finance crisis 2008–2009 drew criticism from scholars and financial press that repurchases were being used by firms to manipulate their stock prices. This paper examines whether a greater firm’s repurchase intensity distorts prices reflecting information. We analyse 2 sets of unbalanced panel data contain sample 337 US another 167 Malaysian repurchasing between 2012 2016. Contrary criticism, we find firms’ in USA stimulates faster incorporation information price results more efficient The main findings hold true are robust when an alternative measure was used. support notion serves as signalling tool promote also no strong evidence supporting shares repurchased distort JEL Classifications: G10, G14, G35