By Peter R. Orszag – In a relatively sluggish economy, it’s harder for companies to generate fast revenue growth, and investors seem to believe that it’s becoming more challenging to boost earnings growth by further streamlining existing corporate operations.
Over the past three years, 15 percent to 20 percent of growth in earnings per share has come from companies buying back their own shares. Such activity typically has diminishing returns.
As companies approach this threshold after years of substantial buybacks, the relative return for mergers and acquisitions may increase. more> http://tinyurl.com/lmqhdsj