This study documents evidence that share repurchases have become persistent in recent years, as an increasing number of firms repurchase shares year after year. This persistence means that share repurchases are now a long-term cash flow commitment. Firms use cash flow as the primary source of capital to finance their repeated share repurchases. This internal financing has cumulatively large effects on capital structure in the form of steady increases in retained earnings and comparable decreases in paid-in-capital over time.
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Key words: Share repurchases, valuation, cash flow, retained earnings, capital structure, firm maturity​

JEL classification: G31, G32, G35