The effect of buybacks on companies investments

The research of William Lazonick, an economics professor associated to IMT-BS, about the consequences of buybacks on companies investments and corporate innovation was the subject of an article « The economist who put stock buybacks in Whashington’s crosshairs » in The New Yorker.

William Lazonick defends it’s necessary to curb buybacks for a « fostering equitable, long-term economic growth ». In this article, he denounces companies who invest more in buybacks than « in their workers and infrastructure » and in corporate innovation.

label carnot imt-bs

Since 2013, thanks to the Institut Carnot financial support, the economist William Lazonick is our invitee on the campus every year. His involvement in IMT-BS research teams is a real strenght for our school.