By William Lazonick “The deceptively named Tax Cut and Jobs Act slashes the corporate tax rate from 35 percent to 21 percent on the theory that companies will use the extra after-tax profits to make productive investments that will create…
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Apple deserves to feel Trump’s pressure on jobs
By Eric Reguly “Donald Trump, now President, loved bashing the auto makers during the election campaign and his tirades worked a charm among the voters in the rust-belt states and the regions that have been swamped by Chinese and Mexican…
Why are stock markets soaring?
By Simon Caulkin “Shaking off the doomy prognostications of mainstream economists, stock markets on both sides of the Atlantic have surged since the Brexit vote in June and Donald Trump’s election as US president, hitting high after high. Why?”… [Click…
Is shareholder capitalism actually good for shareholders
By Shareholders Unite “In the 1970s, the idea that companies exist for the main (or even sole) purpose to maximize shareholder value started to gain traction as it was propagated by economist like Milton Friedman and Michael Jensen. Now, there…
What caused the mess we are in, and how do we get out of it?
By Peter Winsley “Inequality, social malaise, and identity-based extremism result from productivity trends, technological change, globalisation, and business models. These sit within tax, labour market, competition, trade, intellectual property and other policy settings that governments can change.”… [Click HERE to…
Short-termism, quarterly capitalism, and capital flows evidence
By Joaquin Barquero “Media and business analysts have recently identified stock buybacks and dividend increases as an empirical evidence that companies in the USA are not doing their best efforts to maximize value in the long-term.”… [Click HERE to read the full…
Realized pay ‘only measure of CEO pay that anyone should use,’ according to new article
Anonymous “The SEC should replace the current Summary Compensation Table definition of total pay with a realized pay figure that reflects the impact of stock price fluctuations, according to a recent Harvard Business Review article by William Lazonick, a professor of economics…
Short-termism and shareholder payouts: Getting corporate capital flows right
By Jesse Fried and Charles C. Y. Wang “A fierce debate has been raging over whether shareholder-driven “short-termism” (or “quarterly capitalism”) is a critical problem for U.S. public firms, their investors, and the nation’s economy. Certain academics (Bratton and Wachter,…
Is there a fix for short-termism?
By Cydney Posner “Much has been written about the problems associated with the prevalence of short-term thinking in corporate America. As noted in a post from The Harvard Law School Forum on Corporate Governance and Financial Regulation, a recent academic study…
Resisting the lure of short-termism: Killing the ‘world’s dumbest idea’
By Steve Denning “When pressures are mounting to deliver short-term results, how do successful CEOs resist those pressures and achieve long-term growth? The issue is pressing: low global economic growth is putting stress on the political and social fabric in…
