Abstract
ABSTRACT Combining data on share repurchases conducted by Chinese listed companies in the public market, this study explores the impact of corporate share repurchases on capital market information efficiency. The research results show that share repurchases effectively improve the information efficiency of the capital market. The mechanism test finds that share repurchases improve the capital market information efficiency by increasing stock liquidity and improving the market information environment. In addition, the heterogeneity test finds that the positive impact of share repurchases on the information efficiency of the capital market is more significant after the launch of the new Company Law in 2018 and in a bear market. Overall, this study provides a theoretical reference on the government’s efforts to improve the basic capital market system with the aim of high-quality capital market development.
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