Shares buybacks/repurchases and dividends payouts tend to peak around the start of the recessions and run elevated

Fantastic news! We've Found the answer you've been seeking!

Question:

Shares buybacks/repurchases and dividends payouts tend to peak around the start of the recessions and run elevated through the early stages of these downturns. This is especially pronounced when we consider such payouts rising relative to corporate earnings. Provide three reasons that can help explain this regularity. Briefly discuss how each one contributes to rising share of earnings being paid out in the form of buybacks and dividends. Why would companies increase purchases of their own stock when company stock is at high valuations? Why would companies want to issue higher dividends when their free cash flow is shrinking?