To Decapitalize, Or To Capitalize?
5 min readMar 5, 2021
Senator Elizabeth Warren appeared on CNBC earlier this week, sparring with hosts Becky Quick and Joe Kernan over stock buybacks:
Both sides here either forget about, miss, or fail to prioritize the key behavioral incentives that drive this activity.
It is true that company managers are shareholder agents — and are obligated to pursue projects to the end of wealth maximization. If the managers perceive that they do…
