Using corporate payout data from 33 economies, this study investigates the contribution ofstock repurchases to the value of the firm and cash holdings in different country-level investorprotection environments. We find that stock repurchases contributemoretofirm value incountries with strong investor protection than in countries with weak investor protection. Wealso report that dividends contribute approximately 60% more tofirm value than repurchasesin countries with weak investor protection. Furthermore, as the proportion of repurchases intotal payouts increases, the marginal value of cash increases in countries with strong investorprotection, whereas it declines in countries with weak investor protection. In a poor investorprotection environment, the marginal value of cash for afirm that makes 100% of its payouts viarepurchases is 12 cents lower than that for afirm that distributes 100% of its payouts viadividends. Overall, ourfindings highlight that stock repurchases are less effective thandividends in mitigating agency problems associated with free cashflow in countries with poorinvestor protection.