This paper examines the long-term performance of firms following open market share repurchase announcements from 1980 to 1990. The authors find that the average abnormal four-year buy-and-hold return after the initial announcement is 12.1%, with a particularly strong effect for "value" stocks, where the average abnormal return is 45.3%. For "glamour" stocks, no positive drift in abnormal returns is observed. The findings suggest that the market underreacts to repurchase announcements, ignoring much of the information conveyed through these announcements. The paper also explores the determinants of long-run performance and robustness checks, concluding that the market's initial reaction to repurchase announcements is inconsistent with the undervaluation theme managers often claim.This paper examines the long-term performance of firms following open market share repurchase announcements from 1980 to 1990. The authors find that the average abnormal four-year buy-and-hold return after the initial announcement is 12.1%, with a particularly strong effect for "value" stocks, where the average abnormal return is 45.3%. For "glamour" stocks, no positive drift in abnormal returns is observed. The findings suggest that the market underreacts to repurchase announcements, ignoring much of the information conveyed through these announcements. The paper also explores the determinants of long-run performance and robustness checks, concluding that the market's initial reaction to repurchase announcements is inconsistent with the undervaluation theme managers often claim.