Using UK open market repurchases, we reject the market underreaction hypothesis and the market overreaction hypothesis proposed by (Ikenberry, Lakonishok and Vermaelen 1995) and (Peyer and Vermaelen 2009), respectively. The evidence supports that the UK market reacts slowly to actual repurchases...

We examine long run firm performance following UK open market share repurchases announced between 1999 and 2004. We find the long run abnormal share performance among UK repurchasing firms after the initial announcement. The mean two-year abnormal buy-and-hold returns of small firms and value...