Events

Dr. Susan Z. Shu
Associate Professor in Accounting
Carroll School of Management
Boston College

Share repurchases attract significant negative media attention. We examine whether the level of media exposure of a firm influences share repurchase activity. We find that more media exposure leads to a lower likelihood and level of share repurchases. This reduction is concentrated among the set of firms that have higher stakeholder concerns relating to labor, ESG, and government. We also find that firms with more media exposure shift to less contentious forms of payouts such as dividends, although total payout does not change. Among firms that continue with share repurchases, more media exposure leads to a lower likelihood of announcing a share repurchase plan and lower announced plan size. We find no evidence that more media exposure leads firms to invest in higher levels of R&D, capital expenditures, or employment growth.