Dividends do not affect the ownership structure of the firm. The same set of owners retain the same % interest in the firm before and after a dividend.
Buybacks are manager-instigated, marginal investors have little say or agency.
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Which is also true of issuance, right? It has to be something about the combination of narrower ownership and the lack of ideas for how to invest more money. But growth-forever also seems like a problem.
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Both require board approval and not much else. I think I'm really galled by the way it reduces liquidity for a stock (makes institutional investors more able to impact price) and signals "no ideas". How can tech firms do buybacks and still face employees?
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