Corporate finance


can someone explain the following reasoning for the benefits of share repurchases I found in the FT: “Agency costs reductions Share prices increase because the market expects excess cash to be wasted in value-destroying projects. Of course, this assumes that managers are unwilling or incapable of “parking” excess cash in investments that don’t destroy value.”


In fact, not needed, srry… However, the article is worth reading, so please enjoy

^ Needs subscription. And it’s not like we don’t have enough to read already.