2006 August 31 | Capital Flow Watch

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Corporate governance

Business professor criticizes some buybacks

By John Schroy, on August 31st, 2006 |

'Fight of Money Bags and Coffers' by Pieter van der Heyden

The Harvard Business Review (September 2006) featured a lead article by Professor Alfred Rappaport of Northwestern Univerity’s Kellog Graduate School of Management that questioned stock buybacks at prices above intrinsic value.

However, Professor Rappaport didn’t object to buybacks below intrinsic value, as had Benjamin Graham, Warren Buffett’s mentor and guru.

More » Business professor criticizes some buybacks