In today’s briefing:
- The Data Also Shows that Companies with Low Stock Valuations Are Increasingly Using Share Buybacks
The Data Also Shows that Companies with Low Stock Valuations Are Increasingly Using Share Buybacks
- Data suggests that share buybacks/share cancellations are expected to have positive effect on ROE/ROA, while companies with low valuations increasingly utilize share buybacks as a measure to raise stock prices.
- Overseas investors share the value that companies should have business plans for growth and return surplus cash after investment to shareholders. There’s gap between investors and companies inn this value.
- More effective approach would be to require management to fulfill accountability by explaining fundamentals of returning unused cash to shareholders and disclosing business plans if they wish to retain cash.
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