Actual Share Repurchases, Timing and Liquidity

26 Pages Posted: 5 Nov 2006 Last revised: 2 May 2014

See all articles by Edith Ginglinger

Edith Ginglinger

Université Paris-Dauphine, PSL Research University; European Corporate Governance Institute (ECGI)

Jacques Hamon

Université Paris Dauphine - CEREG


Research on the impact of open market share repurchases has been hindered by the lack of data available on actual share repurchases in many countries, including the US. Using a previously unused database containing detailed information on 36,848 repurchases made by 352 French firms, we show that corporate share repurchases have a significant adverse effect on liquidity as measured by bid-ask spread or depth. Our results also indicate that share repurchases largely reflect contrarian trading rather than managerial timing ability.

Keywords: Repurchase, Timing, Liquidity, Euronext Paris

JEL Classification: G14, G32, G35

Suggested Citation

Ginglinger, Edith and Hamon, Jacques, Actual Share Repurchases, Timing and Liquidity. Journal of Banking and Finance, 2007, 31, 3, 915-938, Available at SSRN:

Edith Ginglinger (Contact Author)

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Jacques Hamon

Université Paris Dauphine - CEREG ( email )

Place du Marechal de Lattre Tassigny