This study integrates the viewpoint of research and development and insider trading to examine long-run firm performance following open market stock repurchases. The variables include research and development expenditures, unexpected research and development expenditures, technical efficiency, scale efficiency, insider trading, insider net buys, book-to-market ratio, size, debt ratio, repurchase purpose, repurchase ratio, cash ratio and repurchase times. The empirical results indicate that the book-to-market ratio has positive influence on return on equity, earnings per share and return on asset. Moreover, the insider trading and insider net buys have significant relation to the buy-and-hold abnormal return of stock repurchases. Finally, this study documents that the insider net buys, book-to-market ratio, size and cash ratio significantly impact cumulative abnormal return of stock repurchases.
