Share repurchases do not disco... Note

Share repurchases do not discourage investment

Theory tells us that, and the empirics tell us that too: Our study examines the claim that share repurchases lead to reductions in real investments. Repurchase opponents argue that managers forego valuable investments to conduct opportunistic repurchases, while proponents argue that repurchases return excess cash to shareholders. We compare repurchasing firms’ real investments in capital […]