Abstract: The economic consequences of share repurchase by the listed companies mainly focus on its market effects and the financial effects. By share repurchasing, listed companies send a signal to the outside investors, and make different degrees of changes on the stock price and financial indicators. With different development histories of the capital market of China and the United States, the economic consequences of share repurchase of these two countries also show differences. The similarities and the differences between China and the United State with comparative analysis of the economic consequences of share repurchase are revealed, for the purpose of providing theoretical references and experiential guidance for share repurchase practice of China’s listed companies.

Key words: share repurchase, economic consequence, market effect, financial effect, comparison between China and the United States