On April 26th 2021, STL professor Nitzan Shilon was invited on the Council of Institutional Investors’ podcast – “The Voice of Corporate Governance.” As an educational podcast that offers members access to timely information and perspectives, the podcast aims to increase public awareness of critical issues and developments in corporate governance and capital markets.
In the episode, podcast host Jeff Mahoney interviewed professor Shilon about his recent research paper titled Pay for Destruction: The Executive Compensation Arrangements That Encourage Value-Decreasing Stock Buybacks.
After talking about the reasons that motivated him to write this paper, professor Shilon delved into some of its main findings. For example, he explained how his paper argues that stock buybacks are driven by short-term interests that function as undesirable incentives resulting in higher financial risks for both firms and stakeholders. He also briefly outlines specific lapses in disclosure rules relating to stock buybacks as well as his proposed solution to those lapses.
For more details, you can click here to listen to the full episode (the second from the top).
