In Taiwan, open market repurchase is a required information disclosure event by law. Repurchase not only is an important financial decision but also affects the trading of securities. Academic research on stock repurchases have established that repurchases significantly affects the wealth of participating and non-participating shareholders. This paper using financial ratios including profitability index, liquidity index, productivity index, and leverage index to examine the difference in financial and operating characteristics between repurchasing firms and non-repurchasing firms during 2000 to 2008. We also examine the effect of repurchasing on market liquidity through multiple-regression model and we include variables such as firm’s ownership structure. Our results show that repurchasing firms are larger in size, and have higher profitability and current ratio, but have lower stock price, financial leverage, and fewer inside shareholders. These findings are consistent with prior studies. Our results also indicate that stock repurchases improve the liquidity of the repurchasing firms, while both the insider and institutions holdings are negatively related to liquidity.