Share buybacks are a topic of debate among investors and executives, with some arguing they return shareholder cash quickly and are a tax-efficient alternative to dividends.

Others believe they can increase share value by reducing the register.

However, academic literature is ambiguous, with a US study finding that 29% of buyback-announcing corporations were at risk of missing EPS projections without them.

A UK study found that buybacks did not affect EPS targets.

A new study reveals that many organizations fail to efficiently manage share repurchases, requiring boards to maximize shares, minimize market risk, and limit commissions.

At least 10% of companies use sophisticated contracts with large investment bank brokers instead of buying on the open market.

These agreements can manipulate the daily VWAP benchmark, allowing brokers to profit at shareholders’ expense.

Experts argue that companies and their boards do not understand the potential for brokers to make significant money at shareholders’ expense.

Global buybacks reached $1.3tn last year, quadrupling the level a decade earlier.

SEC disclosure regulations may change this, and if they survive a business group lawsuit, they can establish how many US corporations have been shortchanged on their shares.