JEL classification: G31, G32, G3
Key words: Share repurchases, cash flow, retained earnings, financial maturity, investment, dividends
학회소식
[2022년 제4차 융합학술대회]The Persistence and Consequences of Share Repurchases
작성자 : 관리자
조회수 : 227
게시일 :
2022-12-19
Firms primarily use cash flow to finance increasingly persistent repurchases. This internal financing gradually increases retained earnings in the capital structure and results in high (low) repurchase (investment) sensitivity to cash flow. These effects are particularly pronounced among financially mature firms. During recent decades, the repurchase–cash flow sensitivity of U.S. firms has increased steadily, with steeper increases for financially mature firms. Repurchases do not appear to be associated with underinvestment. A non-trivial number of firms would have depleted their retained earnings had they paid dividends rather than repurchased shares.
