Blue Chips Are Addicted To ‘Corporate Cocaine’


By Steve Denning – In a world in which corporate performance and executive compensation are linked to earnings per share (EPS) [2] and the firm’s share price, share buybacks are an easy way out.

A shortfall in earnings?

No problem! Executives can just have their firm buy a swathe of their own shares (generally in secret) and hey presto, the share price rises; they get their bonus and short-term investors make a quick buck. more> http://tinyurl.com/kbqwr7v

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