Yatin N. Bhagwat, Marinus DeBruine
Employing a matched sample constructed from firms across all but the financial and regulated industries during the 1998-2014 time period, this study compares capital expenditures by firms that repurchase shares to those that did not. Our results do not support the assertion that firms shave investments to repurchase shares; instead, these findings corroborate the notion that firms regularly return funds to shareholders because they generate more funds than they can use in light of the growth opportunities they face.