I’m working on a finance case study and need a sample draft to help me learn.

What kind of signal management of a company sends to investors by repurchasing its own shares?

Understanding the Signals Sent to Investors by a Company’s Share Repurchase: A Step-by-Step Guide

• Find out the repurchasing policies of the company. Start by learning about the company’s share repurchase guidelines. Any press releases, earnings reports, or annual reports that touch on the company’s policy on share repurchasing should be sought out.
• Identify the driving force behind the repurchasing: Companies may decide to buy back their own shares for a number of reasons, including rising stock prices, growing earnings per share, or enhancing total shareholder value.
• Examine how repurchasing will affect the company’s financials. Take into account how share repurchasing would affect the company’s financial indicators, including price-to-earnings (P/E), return on equity (ROE), and earnings per share (EPS).
• Analyze the business’s justification for the repurchase: It’s critical to comprehend the justification for the company’s choice to repurchase its own shares. In earnings reports or other public pronouncements, keep an eye out for any assertions made by management.

In real life there is an information asymmetry between management and investors. Simply speaking management knows more about the company than investors. By repurchasing its own shares management can mitigate the information asymmetry. What kind of information such action conveys to market and investors?