The Economist (July 18)
2015/ 07/ 19 by jd in Global News
“There has always been an element of financial engineering about buy-backs. Can it really be good news if a firm feels it has nothing better to do with its money? An enthusiasm for buy-backs creates the sense that executives are more interested in short-term share-price performance than in the company’s long-term health.” According to some estimates, the number of available shares in U.S. stock markets has been reduced by approximately 6% since 2009 as a result of buy-backs, but the trend appears to be slowing.
Tags: Buy-backs, Enthusiasm, Executives, Financial engineering, Performance, Share price, Short term, U.S.
