Do Buybacks Destroy Shareholder Value? [ANALYSIS]

There is nothing that divides the investment community more than share buybacks. However, despite the wealth of information, and studies on the benefits/drawbacks of repurchases, a solid universal conclusion has remained elusive. Opposition to buybacks In the UK, buybacks are generally considered a waste of shareholder funds. British investors prefer their investments to pay hefty dividends. Many reasons are citied against the use of buybacks: The stock market is supposed to be a long-term compounding machine. Replace dividends with buybacks and compounding takes a hit. As an executive with a compensation plan linked to share performance, if you buyback and…