Why do UK firms repurchase their own shares

We examine the practice of share repurchases in UK from 2000 to 2016 find that an important regulatory reform 2003, which relaxed previously strict rules about repurchases, was followed by a significant increase repurchase activity main-market listed firms then motivation for testing several key hypotheses prior literature. Our analysis 6,228 firm years provides support, across both regimes, free cash flow and investment hypotheses. However, there are also changes motivations following easing restrictions. Important differences between US payout practices identified.