Cash dividend and shares repurchase announcements are said to have informational content concerning the value of the firm. The paper attempts to present the results of the study on the impact of cash dividends and shares repurchases decisions on returns, liquidity and risk profile of the firms. It examines whether the age and size of the firm affect the cash dividend and shares repurchase decisions of the firms. In operational terms, it aims to assess the management perception of cash dividend and shares repurchase announcements and the underlying motives for issuing them in Indian context. For the purpose, the study has employed the event study methodology and the pre-test and post-test research design to evaluate the changes. The uniqueness of this study emanates from the fact that it is perhaps the first attempt (to the best of the authors’ knowledge) of its kind based on both the primary and the secondary data evidences at providing the views, motivations and impact behind the cash dividend and shares repurchase decisions and their announcements. It is perhaps the first attempt of its kind comprising of a large sample of BSE 500 index companies. With a substantially larger data set, the present study is expected to provide credible results.