(Bloomberg) — New research has directly connected the explosive growth of passive investing to deteriorating corporate performance over the long haul.In a paper posted this month, a trio of academics tracked share-buyback activity for a range of companies and found those with higher passive ownership spent more on stock repurchases but saw worse financial outcomes.Having disengaged owners “lowered the association” between buybacks and future performance, according to authors Brian Bratten and Jeff Payne of the University of Kentucky and Meng Huang of the University of Toledo. It was also positively associated with “suspect” repurchases — those that resulted in companies …read more
Source:: Yahoo Finance
