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I tend to agree with this article, would prefer dividends to share buybacks as it is more 'egalitarian'. Especially since a lot of SGX companies has management that is also controlling shareholder.

http://blogs.economictimes.indiatimes.co...re-buyback

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Another nice perspective on the topic:

'How should shareholders view share buybacks?
We would suggest that management and investors should view share repurchases the same
way that they would view purchases of shares in another company.'

http://www.terrysmithblog.com/straight-t...r-foe.html

hi smallcaps,

Thanks for the article. Contrary to the title of this thread, we should continue to allow sharebuyback to exist, as this will allow investors another way to infer whether Mgt are really working in the best interests of shareholders.

(25-02-2013, 04:24 PM)weijian Wrote: [ -> ]hi smallcaps,

Thanks for the article. Contrary to the title of this thread, we should continue to allow sharebuyback to exist, as this will allow investors another way to infer whether Mgt are really working in the best interests of shareholders.

Yep, I would prefer companies that do not use options and share buybacks mechanisms.