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Empirical evidences in literature support the notion that managers 'listen to the market' since corporate events and changes in corporate

payout policies are sensitive to market reactions. Historically, cash dividends have been considered as the most important form of payout. Of late, shares repurchases are emerging as an alternative mode of paying cash dividend. This monograph is perhaps the first of its kind that explores the impact of cash dividend changes (increase and decrease) and no change as well as shares repurchase announcements (frequent and infrequent) on the abnormal returns, changes in liquidity and risk profile of the sample firms both at an aggregate level and dis-aggregate level. The findings are further corroborated through the survey responses from senior executives of BSE 500 index firms.