We find that stock returns are driven, at least in part, by open market share repurchases by the firm. We also find that the amount of open market repurchases can be predicted, at least in part, by the pre-repurchase stock performance. Further analysis reveals that post-announcement return anomalies are more significant for firms that follow their announcements by conducting actual repurchases during the four quarters following the announcement quarter. In addition, the amount of shares repurchased is a better predictor of returns for firms that announce only once within one year
