3 ms·
Sounds to me like the CAPM economic model is in need of revision. Buybacks are a common tool for increasing shareholder value and investor sentiment figures hea
by na85 6y ago
Sounds to me like the CAPM economic model is in need of revision. Buybacks are a common tool for increasing shareholder value and investor sentiment figures heavily in asset pricing.
- btilly 6y agoThere are a number of reasons why buybacks can increase prices. See https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-value-of-share-buybacks#:~:text=Research%20from%20both%20academics%20and,of%20the%20shares%2C%20see%20prices https://www.mckinsey.com/business-functions/strategy-and-cor... for a list. All are second order effects.