By Rana Foroohar “One of the great ironies of the 10 years following the financial crisis is the way in which low interest rate monetary policy — which was designed to get Main Street USA back up and running and…
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Economist seeks to debunk ‘shareholder value’
By David M. Katz “Using strong language in a recent working paper, an economist has set his sights on debunking two of the most well-established ideas in corporate finance: the notion that “maximizing shareholder value” should be a company’s main goal…
Even after nuclear catastrophe, SCANA execs eye bonuses
By Steve Bailey “So with consumers yelling for heads to roll, what is South Carolina Electric & Gas planning next? The largest stock buyback in the company’s history, which will help shareholders and bolster executive bonuses.”… [Click HERE to read…
Steve Bannon will crash our economy if no one stops him
By Linette Lopez “Left to his own devices, Steve Bannon will crash our economy. In an interview with The American Prospect, the White House chief strategist laid out a single specific goal for American “economic nationalism” in the Trump administration: a…
Les pharmas dépensent autant pour leurs actionnaires que pour la recherché
By Marie Maurisse “Entre 2006 et 2015, Novartis a versé presque autant d’argent à ses actionnaires qu’elle n’en a investi en recherche et développement (R&D). Une étude récente pointe les dérives d’une telle évolution.”… [Click HERE to read the full article]
Economist argues maximizing shareholder value hurts drug innovation
By Daniel Levine “The pharmaceutical industry has long argued that high drug prices are necessary to incentivize investment in and fund high-risk research and development of innovative new therapies.”… [Click HERE to listen the interview]
How stock buybacks cause economic stagnation
By Arne Alsin “Corporate suicide.” That’s how two researchers, Robert Ayres and Michael Olenick, are now describing the stock buyback boom in the U.S. economy. For the uninitiated, buybacks are the process by which a corporation buys up its own…
US Pharma’s Financialized Business Model
By William Lazonick, Matt Hopkins, Ken Jacobson, Mustafa Erdem Sakinç and Öner Tulum ◊ Price gouging in the US pharmaceutical drug industry goes back more than three decades. In 1985 US Representative Henry Waxman, chair of the House Subcommittee on Health and the Environment, accused the pharmaceutical industry of “gouging the American public” with “outrageous” price increases, driven by “greed on a massive scale.” Even in the wake of the many Congressional inquiries that have taken place since the 1980s, including one inspired by the extortionate prices that Gilead Sciences has placed on its Hepatitis-C drugs Sovaldi since 2013 and Harvoni since 2014, the US government has not seen fit to regulate drug prices. UK Prescription Price Regulation Scheme data for 1996 through 2010 show that, while drug prices in other advanced nations were close to the UK’s regulated prices, those in the United States were between 74 percent and 181 percent higher.
Don’t pop open the bubbly just yet! This market buying activity used to be illegal
By Richard Bowen “The stock market is up and we should all be celebrating. However before you pop open the champagne, let’s look at the real story. The stock buybacks driving the market used to be illegal because they manipulated…
How “Shareholder Value” is Killing Innovation
By William Lazonick “Conventional wisdom holds that the primary function of the stock market is to raise cash that companies use to invest in productive capabilities. The conventional wisdom is wrong.”… [Click HERE to read the full article]
