Abstract
A study analyzes the impact share repurchases have on stock prices during the quarter of repurchase and the quarter following the repurchase. It is found that repurchasing firms have higher capital gains than non-repurchasing firms in 8 of 10 quarters examined. A nonparametric test (Wilcoxon Rank Sum Test) is used, and it is found that repurchasing firms have significantly higher capital gains in the current quarter in 2 of 10 quarters. It is also found that repurchasing firms have significantly higher capital gains in the quarter following the repurchase in one of 9 quarters. No compelling evidence was found that investing in a portfolio of oil and gas repurchasing firms will earn abnormal returns in the short-run.