Event risk covenants and shareholder wealth: ethical implications of the "poison put" provision in bonds
Article Abstract:
A study has been conducted to examine the ethical implications of poison put provisions included in bond offerings. Due to the presence of an inherent conflict between the interests of a company's bondholders and stockholders, the former tend to favor more conservative investments and less debt to protect their claims. Findings revealed that the inclusion of a poison put provision in a bond covenant appears to either deter takeovers or to limit the potential wealth transfers from bondholders to shareholders, or to do both. Such inclusion cannot said to be used solely for management entrenchment.
Publication Name: Journal of Business Ethics
Subject: Law
ISSN: 0167-4544
Year: 1999
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Gift giving, bribery and corruption: ethical management of business relationships in China
Article Abstract:
Gift-giving presents a touchy subject when it comes to doing business in China since it is a prevalent social custom that is seen as a major component of relationship building. In a society where accepting a gift and not reciprocating with an equal gesture is considered a moral wrong, the organization venturing into China must take care not to offend. Rather than approach doing business with China from Western moral standards, it is encouraged that businesses arm themselves with knowledge about its nuances.
Publication Name: Journal of Business Ethics
Subject: Law
ISSN: 0167-4544
Year: 1999
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