Gan, ChristopherBian, CWu, DCohen, DA2017-08-282017-05-312017-06-062017-03-29Gan, C., Bian, C., Wu, D., & Cohen, D.A. (2017). Determinants of share returns following repurchase announcements in China. Investment Management and Financial Innovations, 14(2), 4-18. doi:10.21511/imfi.14(2).2017.011810-4967https://hdl.handle.net/10182/8470By combining the market model with the three-factor model, this study investigates firms’ share returns after the announcement of share repurchase. Employing data for China’s A-share market, this study’s sample utilizes 417 share repurchase announcements over the period of 2000 to 2012. Empirical results show that firms with higher sales growth rates are more likely to send a positive signal to the market through their share repurchase efforts. Analysis also shows that the higher a firm’s price-to-earnings ratio (utilized as a measure of overvaluation), the lower the firm’s cumulative abnormal returns. These results imply that Chinese share markets put more emphasis on the firm’s future growth and share overvaluation.pp.4-18en© Christopher Gan, Chao Bian, Damon Wu, David A. Cohen, 2017 This is a published version of the paper, available at LLC "CPC "Business Perspectives" at http://dx.doi.org/10.21511/imfi.14(2).2017.01leverage hypothesismarket responseoperating performancerepurchase announcementsshare repurchasesignaling hypothesisJournal Article10.21511/imfi.14(2).2017.01ANZSRC::150205 Investment and Risk ManagementANZSRC::140210 International Economics and International Finance1812-9358ANZSRC::3502 Banking, finance and investmenthttps://creativecommons.org/licenses/by-nc/4.0/Attribution-NonCommercial