Profit priorities: the trade-off between stock buybacks and corporate investment empirical evidence from Thailand

This study explores the relationship between share repurchases and corporate investment in Thailand using firm-level panel data from 2001 to 2023. Employing panel regression with firm and year fixed effects, the findings indicate a significant negative relationship between share repurchases and investment, suggesting that firms reduce buybacks to prioritize investments. The effect is stronger for firms with high growth opportunities, whereas no clear relationship is found for financially constrained firms. These findings contribute to understanding how Thai firms balance share repurchases and investment, emphasizing the role of financial flexibility in decision-making.