Stock repurchase and Arab Spring empirical evidence from the MENA region

Abstract

This paper examines how repurchase programs are used in the MENA region in the context of the political instability associated with the Arab Spring. We extend the knowledge regarding the relationship between stock repurchases and firm performance. We find that repurchase programs are used differently across countries. In fact, repurchases are negatively related to prior stock price performance. However, the market reacts more favorably to repurchases made by low market capitalization firms and by firms with high book-to-market ratio.