Stock buybacks can impact a company’s financial performance and shareholder value in various ways, from increasing earnings per share to reducing funds available for future growth and investment. While stock buybacks can benefit shareholders, they also have potential downsides and can contribute to market instability if companies prioritize buybacks over long-term growth and investment.
Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. Effective corporate governance helps a company achieve its objectives, protects the rights of shareholders, and enhances the company’s reputation. It also contributes to the stability and growth of the overall economy.
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