Despite the popularity of firms doing open-market share repurchases, there is still a large degree of uncertainty regarding the announcement of a repurchase plan. Firms are not obligated to follow through with the actual repurchase and as a result in many markets firms often fail to repurchase the target amount. The objective of this paper is to use the Taiwan market to study if investor reaction to a stock repurchase announcement will be greater if a firm has a good reputation of following through with repurchase plans.

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