Glossary
Share buyback
A company repurchasing its own shares, which shrinks share count and can lift per-share value. We tested buyback signals as a strategy; no after-cost edge survived.
In plain terms
The investment thesis is that managements buy back stock when they believe it is cheap, so announcements carry information. Japan made an interesting lab for this: buybacks surged after the 2023 TSE governance push, giving the signal plenty of recent events.
Announcements are not executions — many programs complete only partially — and by the time a retail investor reads the news, the pop has usually happened. Our event-window tests found the remaining drift too small to cover trading costs.
Related terms
Educational definitions only. Not investment advice.