By focusing on dividend cutting companies, we investigate the relationship between dividend cuts and investment opportunities. The decision to cut dividend is not only dependent on the poor operating performance but also closely related to investment opportunities. We document that firms with higher investment opportunities are more likely to cut dividends to retain capital to prevent sub-optimal investments. We also provide evidence that the share repurchase has substitution effect to dividends in the dividend cutting context, which is more pronounced with the less flexible share repurchasing method. Furthermore, dividend cuts associated with higher investment opportunities, are likely followed by enhanced operating performance afterwards. We argue that the signaling effect of share repurchases vary according to the investment opportunity among dividend cutting entities over the long-run horizon. To the best of our knowledge, this is the first comprehensive investigation into the relation between dividend cut, share repurchase, and investment opportunity from the signaling perspective in the Korean context.