What Is the Stock Buyback Theory?

Companies shouldn’t confuse the value created by returning cash to shareholders with the value created by actual operational improvements. After all, the market doesn’t. A McKinsey Quarterly article.
Tags: Share buybacks,value of buybacks,companies buy back stock,Capital management,recoup the cost of capital,increase in share price, increase in earnings per share, company's intrinsic value

Investing in companies that are buying back shares is a time-tested strategy. But the rapid pace of buybacks is one reason for caution.
Tags: Ben Silverman,Howard Silverblatt,Stoyan Bojinov,corporate funding,share capital,ownership changes,acquisitions,mergers,shareholdings,corporate actions,corporate,industrial news,share buybacks,political,general news,personal investments in mutual funds,personal finance,personal investments,trusts,funds,financial vehicles,unit trusts,mutual funds,financial services,investing,securities

If done right, share repurchases can create more value for stockholders. But how often are they done right? The Wall Street Journal invited Whitney R. Tilson and Gregory V. Milano to debate the issue.
Tags: corporate changes,stock listings,performance,earnings,dividends,funding,capital,share capital,initial public offerings,ownership changes,acquisitions,mergers,takeovers,management issues,corporate actions,corporate,industrial news,share buybacks,content types,factiva filters,fc&e exclusion filter,fc&e industry news filter

THE belief that share buy-backs are a universally good thing seems hard to shake, even though there was a time when they were seen as a sign of the lack of...

IN THE decade before America’s housing bubble burst, Home Depot, an American home-improvement chain, spent heavily on building new shops to meet rampant demand for...