In improving the current shareholder proposal process, legislators should trade the butcher knife for the scalpel.
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A Small Step for Theory, a Leap Forward in Corporate Governance
Moving from shareholder value maximization to shareholder welfare maximization may be a small step in theory, but it could trigger a leap forward in the way our corporations are run.
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Where Friedman Was Wrong
A new paper by Oliver Hart and Luigi Zingales argues that a company’s objective should be the maximization of shareholders’ welfare, not value.
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Eliot Spitzer: The U.S. Never Had the Will and the Ability to Hold the Most Powerful to Account
In a special interview with ProMarket, former New York governor Eliot Spitzer talks about financial regulation, regulatory capture, and antitrust. Part 1 of 2.
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How Market Power Leads to Corporate Political Influence
Neoclassical economic theory assumes that firms have no power to influence the rules of the game. A new paper by Luigi Zingales argues: This is true only in competitive product markets. When firms have market power, they will seek and obtain political influence and vice versa.
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Blockchains and Corporate Finance: “In a Blockchain Market, Shareholder Activists Might Play Much Less of a Role”
Will blockchain technology lead to less shareholder activism and higher executive compensation? Watch David Yermack’s full Stigler Center lecture on the potential implications of blockchain technology for the future of corporate governance. Second part of a three-part series.
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Enhancing Competition? The Role of Governance in Increasing Exposure to Competition
Contemporary corporate governance reform has been a mixed bag: reforms that increase a company’s exposure to competition through the control market have been helpful, while reforms that empower special interest shareholders are a cause for concern. First part of a two-part series.
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Does Whistleblowing Work?
Whistleblower reward laws work, and they work remarkably well. Congress, the executive branch of government, and the business community should enact, support, and nurture strong whistleblower reward programs.
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How the Global Audit Firms, Led by Deloitte, Are Using Their Lobbying Clout to Dilute Sarbanes-Oxley Reforms
A look at the Big Four’s congressional lobbying activity shows the auditors and their trade association taking advantage of the “Trump” window to roll back the 2002 reforms that changed their business.
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Are Managers Who Oppose Shareholder Proposals Acting in the Best Interest of Shareholders?
A new Stigler Center working paper finds that managers who resist shareholder proposals are typically acting responsibly, as opposed to acting on their own self-interest.
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The Powerful Private Regulator and the Effects of Conflicts of Interest
A new study reveals both the potential biases in the proxy advisory industry and how a new entrant can help mitigate conflicts of interest.
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“Current Populist Discontent Seems Mainly Driven by a Fear of Change and Uncertainty”
In the final installment of ProMarket’s interview series on the economic theory of the firm, we ask Princeton University professor Alan Blinder and University of Mannheim President Ernst-Ludwig von Thadden about the role of corporations and governments in the market.
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