Did these executives act ethically

Assignment Help Financial Accounting

Reference no: EM13136459

Ethics, Management Compensations, and Treasury Stocks

Compensation of senior management is often tied to earnings per share or return on equity. Treasury stock purchases have a favorable impact on both these measures. In the recent buyback boom, many companies borrowed money to purchase treasury shares. In some cases , the motivation for the borrowing and repurchase of shares was the desire of executives to secure their year –end cash bonuses.

1. Did these executives act ethically?

2. Were their actions in the best interests of stockholders? Why or why not?

3. How might such behavior be avoided in the future?

Reference no: EM13136459

Questions Cloud

Why would an agency fund not have revenue : agency funds report assets and liabilities, but not net assets, revenues, or expenses. Briefly explain why this is so. For example, why would an agency fund not have revenue? Why would it not have expenses?

Determining the adjusting entry : On November 1, 2009, Bug Busters collected $6,000 in advance for three months of service to be provided beginning on that date. It was credited in full to unearned rent revenue. Assuming the accounting year ends December 31, give the adjusting ent..

What is the longest wavelength of radiation : If the minimum energy required to break the C-Cl bond in CF3Cl is 540 kJ/mol, what is the longest wavelength of radiation that will break this bond?

Compute the return to risk ratio : Compute the Return to Risk Ratio (RRR). On the basis of the results of (A) - (C), which action should the vendor take - sell soft drinks or ice cream? Why?

Did these executives act ethically : In some cases , the motivation for the borrowing and repurchase of shares was the desire of executives to secure their year –end cash bonuses. Did these executives act ethically?

Write focusing on book 1 of marcus aureliu : write focusing on Book 1 of Marcus Aurelius and what are the functions of the traits of characters that Marcus Aurelius in the sense that shapes me and in the way that giving us the road map?

How many units should be scheduled for production : Assume that the division is using absorption costing and that the divisional manager is giben an annual bonus based on divisional operating income. If Mr Cavalas wants to maximize his division's operating income for the year,how many units should ..

Real world example-politics and power : here are endless examples to cite, just read the front page of any newspaper to get some ideas. President Bush is often accused of helping big oil companies, Democrats yield to major union groups like the NEA and AFL-CIO,

Compute the amount of net gain or loss amortization : Compute the amount of the other comprehensive income (G/L) as of December 31, 2010. Compute the amount of net gain or loss amortization for 2010 (corridor approach). Compute pension expense for 2010.

User Account

All Pages