Research Section: How should companies use their spare cash?

How do investor attitudes compare on either side of the Atlantic? All companies have to try to give investors what they want in terms of return on investment or – perhaps more appropriately – find the kind of investors that want what an investment in that particular stock will provide. Even taking short-sellers and their ilk out of the equation, investors have a wide variety of requirements in terms of returns: some want a stable income, others want the chance of making a fast buck, accepting the higher risks that accompany that strategy. All else being equal, however, how would the majority of investors prefer the companies they’ve invested in to spend any spare cash? Do they want money, in the form of dividends? A buyback program?