Yes it does! Until yesterday even I was under impression that it will not use or cause any issues to the server. But think about performing the SHRINK operation of transaction log & database files on regular basis, say within a scheduled job or ongoing process. Further to my tests refer to this SSPFAQ...
On one of the archive database (using SQL 2005) we have a monthly task to shrink the transaction log during every 1st week of the month, this is required due to clear up the space on one of the drives where the additional transaction log file located (its a long story that we cannot replace the hardware...
You have a production database which has a very high growth rate. As a result the database transaction log gets full resulting a daily scheduled job to shrink. All the times this is affecting the performance on SQL Server, what is the best option to shrink the transaction log and set appropriate settings...