Corporate Governance

The Coronavirus Crisis Has Exposed Private Equity’s Unsustainable Business Model

Private equity portfolio companies are heavily indebted, and they aren’t generating enough cash to service debts. The steady increase in asset values...

MBA Students Against Corporate America: “Stop Lobbying the White House on the Defense Production Act”

Since the virus outbreak, the US Chamber of Commerce has lobbied the federal government to limit the use of a piece of legislation that...

How Private Equity Companies Are Lobbying to Profit from The Covid-19 Economic Fallout

Private equity funds aren’t just seeking to save the investments they already have, but to get access to more capital to invest in a...

The Darkest Side of Monopsony: The South Korean Case

"Chaebols”, large business groups controlled by founder families, are usually considered a crucial ingredient of South Korea's economic miracle. But after a process of...

How to Interpret Financial Market Movements to Predict the Impact of Coronavirus on GDP

Equity markets in the EU and US dropped by as much as 30 percent, which means that investors have revised downward their estimate of...

“Monetary Awards Are Not the Only Reason Why Whistleblowers Report Corporate Malpractice”

At the SEC, Jordan Thomas had a leadership role in developing the program to protect and reward employees who report corporate wrongdoing. Now, he is...

Elon Musk Wants to Get Paid. He Will Get His 2019 Bonus Thanks to an Accounting Magic

In March 2018, Tesla’s Board of Directors granted Musk a potential bonus of 20,264,042 stock option awards under a  plan that uses “adjusted EBITDA” as one...

How US Regulators Allowed Google and Facebook to Become Dominant

The UK's Competition and Markets Authority recently criticized Google and Facebook's excessive market power. American regulators, on the other hand, have allowed them to consolidate...

How Regulators and PwC Fooled Reporters—Again

Is the PCAOB really investigating PricewaterhouseCoopers (PwC) for its role in the Mattel auditing mess? I may be wrong, but I seriously doubt it....

The SEC’s Shareholder Voting Reform Runs Counter to Attempts at Democratizing Corporate America

The SEC should drop its proposed changes or modify them so that they are less onerous and less damaging to the rights of shareholders...

Latest news

Paid to Show the Drug Works: Why “Blind” Clinical Trials for New Drugs are Far Less Blind Than They Should Be

New research shows that physicians in industry-sponsored trials are more captured by pharmaceutical companies than physicians in unsponsored ones.

Bethany McLean’s Weekend Reading List: Elder Care Facilities, Twitter, and Pot

Corruption, lobbying, corporate malfeasance, and frauds: a weekly unconventional selection of must-read articles by investigative journalist Bethany McLean. 

It Is Such a Small World: The Market-Design Academic Community Evolved in a Business Network

Private equity funds such as Michael Dell's MSD Capital made hundreds of millions of dollars in profits from the 2017 FCC spectrum...

How Market Design Economists Helped to Engineer a Mass Privatization of Public Resources

In 2017, the Federal Communications Commission conducted a complex two-sided auction to reallocate spectrum from broadcasters to mobile communications companies. The way...

How Alberto Alesina Challenged the Median Voter Theorem

"Alberto Alesina's insight was that the economy was driven neither by the opportunistic behavior of politicians nor by the pursuit of partisan...

Not Everyone Agreed With Alberto Alesina, but Nobody Could Ignore the Work He Did

Harvard professor Jeffry Fridel was a friend and a colleague of Alberto Alesina. They shared the beginning of their careers, a house...

The Death of Independent Podcasting: What Spotify Is Trying to Do With the Joe Rogan Deal

Spotify is gaining power over podcast distribution by either buying production directly or striking exclusive deals, as it did with Rogan. Once...