firms from
2004 to 2010. They find that share repurchases have beneficial impact
on liquidity. Their findings, in particular, reveal that repurchasing firms
not only help supply liquidity when volatility is high and returns are
low, but also support share prices when other investors sell or short sell
their stock. Hence, the positive effects of share repurchases on liquidity
as documented by these studies are consistent with the price support
hypothesis