An analysis of stock repurchase in Taiwan

► We show that the specific regulation in Taiwan does not prevent market underreaction. ► Firms who retire buybacks earn higher abnormal return than those reissue the buybacks. ► Long-term price performance relates to firms' operation in post repurchase period. ► Long-term price performance relates to dividend payouts in post repurchase period. ► Market reacts asymmetrically to the changes of firms' operation and dividend payouts.