Special Episode: What’s Wrong with Buybacks?
All Else Equal: Making Better Decisions
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Returning Capital to Investors Is a Good Thing
Ecademics worry tremendously about managers not returning capital. When a manager chooses to return capital, they are essentially saying to the investors, our growth opportunities are not as good as they used to be. It's much easier for the manager to hold on to the cash and put the money into band investments or condot at pana. I think that by preventing firms from returning to capital, you're just encouraging them to waste it on perks and on unproductive things. The whole plate of our economy is made up of productive companies like microsop who started paying dividend when Google came around. At the same time microstop started paying a dividend, google came around. Ineffectively, money
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