The Next, Great, Corporate Scandal: Potential Liability of Corporations Engaged in Open Market, 10b-18 Buybacks; a Minority View; Case Histories; Summary of Published Studies; Direction of Future Research

  title={The Next, Great, Corporate Scandal: Potential Liability of Corporations Engaged in Open Market, 10b-18 Buybacks; a Minority View; Case Histories; Summary of Published Studies; Direction of Future Research},
  author={M. Gumport},
  journal={Tuck Contemporary Corporate Governance Issues},
  • M. Gumport
  • Published 2006
  • Business
  • Tuck Contemporary Corporate Governance Issues
Abstract: In 2006, U.S. corporate stock buybacks by S&P 500 companies are expected to exceed $400 billion with 95% conducted through "open market" transactions. Buybacks now account for nearly 70% of corporate cash distributions, squeezing dividend growth. The growth, size and method of execution of buybacks have attracted the attention of academics and practitioners, and consensus on buyback governance risk is shifting. Financial studies indicate buybacks in the 1960's signaled improved future… Expand
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