GOLD 1212.79 $/ozChange: -3.47
PLATINUM 1273.70 $/ozChange: -14.30
R/$ exchange 11.22Change: 0.07
R/€ exchange 14.17Change: 0.08
We have detected that the browser you are using is no longer supported. As a result, some content may not display correctly.
We suggest that you upgrade to the latest version of any of the following browsers:
close notification
powered by
Advanced Search
Text Smaller Disabled Text Bigger

Published on 26th September 2014
Updated 22nd September 2014

If firms are overdoing share buy-backs and starving themselves of necessary investment, artificially propped-up share prices will eventually tumble, The Economist outlined this month, while urging investors to ensure that the pay schemes of corporate managers are designed in a way that does not create a perverse incentive to repurchase their own stock. It quotes a Bank of America Merrill Lynch poll, which found that a majority of fund managers now think that corporates are forgetting that shareholder capitalism is about growth and creation and not just dividing the spoils. The say that companies investing too little spare corporate cash and that there must corporate care. Shareholders are urged to give willing companies a licence to invest and to immediately reject corporate cannibalism.

Topics in this article