This paper contributes to existing

This paper contributes to existing finance literature in the following
ways. Firstly, this paper relates to two important areas of finance
literature - corporate finance and market microstructure. Specifically,
this paper shows that actual share repurchases have a significant impact
on liquidity. Secondly, the findings of this paper can shed some light on
the long debate regarding the impact of share repurchases on liquidity by
showing that the relationship between share repurchases and liquidity
is non-linear. In particular, the evidence indicates that repurchasing
shares is beneficial to liquidity when executed at low level of share
repurchases. In contrast, it may be detrimental to liquidity at high level
of share repurchases. Thirdly, much of previous works done on the
impact of share repurchases on liquidity have been carried out using
data drawn from developed markets while data from emerging markets
have rarely been investigated. This study thus addresses such scarcity
by providing empirical evidence on the impact of share repurchases on
liquidity in an emerging economy, namely, Thailand.