Cash holdings and share repurchases: International evidence

► We examine the patterns and determinants of share repurchases using firm-level data from seven major countries. ► Both U.S. and non-U.S. firms display a common set of share repurchase behavior. ► Large cash holdings are significantly associated with the amount of share repurchases in all countries. ► Cash holdings tend to increase substantially prior to share repurchase as a result of reductions in capital expenditures. ► Our evidence suggests that firms use repurchases to discharge excess capital and to distribute temporary cash flows.