Firms that rely heavily on stock-option-based compensation are significantly more likely to repurchase their stock than firms which rely less heavily on stock options for executive compensation.

"In particular, Almeida et al. [2016] show that the probability of share repurchases is sharply higher for firms that would have just missed the EPS forecast in the absence of a repurchase; and Jolls [1998] shows that firms which rely heavily on stock-option-based compensation are significantly more likely to repurchase their stock than firms which rely less heavily on stock options to compensate their top executives. Given the rise of institutional ownership, an increase in market-induced short-termism may lead firms to increase buybacks and cut long term investment."