Should companies return money to shareholders?

Companies in OECD countries are generating considerable cash flows, linked to the rise in the share of earnings in GDP and the fall in interest payments. We can then imagine two possibilities: Each company significantly increases its investments; Companies return money to shareholders (through dividends and share buybacks), and shareholders reallocate these investments to different activities and investment projects. The disadvantage of the first approach is that it gives access to a smaller variety of projects than the second (each company has a limited choice for its investments) and drives companies to make inefficient investments (in their initial business line, or by diversifying into business lines that they do not know well); it has the advantage of strengthening companies' financial solidity. Three interesting examples of this choice are: Large internet companies have such high earnings that they invest in new business lines in which they may not have any particular skills ; would it not be better if they returned the money to their shareholders who could invest it in companies specialised in these other business lines? Oil and gas companies invest part of the oil and gas rent to diversify into renewable energies; would it not be more efficient if they returned the money to shareholders who could invest in renewable energy pure players? Should traditional car manufacturers turn into electric car manufacturers, or should they disappear and make room for new carmakers?