We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Corporate Stock Reacquisitions.
- Authors
Stevenson, Richard A.
- Abstract
The growth of stock reacquisitions in the past three or four years has created the need to examine the relevant ethical principles. The law provides certain minimum standards of ethical conduct, but the conscientious executive is interested in doing more than the minimum required by the law. Adequate accounting disclosure is an important consideration in such financial transactions. Our inquiry indicates that disclosures of corporate stock reacquisitions in the financial press have not been common. Executives should give more consideration to the public relations aspect of such an important activity, if only to quell speculative rumors when a sizable amount of funds is involved. The increase in stock reacquisition indicates a greater awareness of the possible financial consequences. Ethical considerations should receive the same attention. These include not only adequate disclosure, but also the avoidance of conflict-of-interest situations, and a careful evaluation of the method of repurchase in relation to the amount of stock to be reacquired.
- Subjects
STOCK repurchasing; STOCK ownership; BUSINESS ethics; ETHICS; DISCLOSURE; PERFORMANCE standards; TENDER offers; TRANSACTION costs; DISCLOSURE in accounting; INDUSTRIAL publicity
- Publication
Accounting Review, 1966, Vol 41, Issue 2, p312
- ISSN
0001-4826
- Publication type
Article