Corporate Governance
For Whom Corporate Leaders Bargained: What the Past Can Teach Us About the Questionable Promise of Implementing Stakeholder Capitalism Today
The debate about stakeholder capitalism should seek to learn from our experience with constituency statutes, which authorized corporate leaders to take into account stakeholder...
Does a CEO Have a Duty to Lobby?
We need not only more disclosure, but also more work in alerting people in general (and students in particular) about the distortive effects of...
What Stakeholder Capitalism Can Learn From Milton Friedman
Instead of ridiculing the Friedman doctrine and proclaiming its death, advocates of stakeholder capitalism and responsible investing, like me, can learn a lot from...
The Illusory Promise of “Stakeholderism”: Why Embracing Stakeholder Governance Would Fail Stakeholders
Stakeholderism—granting corporate leaders discretion to give weight to the interest of all stakeholders—should not be expected to deliver its purported benefits to stakeholders. Furthermore,...
Serving Shareholders Doesn’t Mean Putting Profit Above All Else
The time has come for companies, economists, and society to abandon the argument that the only responsibility of business is to maximize profits.
Editor’s note:...
Diversifying Corporate Boards — the Best Way Toward a Balanced Shareholder/Stakeholder System of Corporate Governance
Boards can recognize that their shareholders have needs beyond financial wealth maximization. Making corporate boards representative and diverse works better than co-determination or implied...
Friedman’s Principle, 50 Years Later
In the mid-1980s, Milton Friedman’s view that the only social responsibility of business is to increase its profits became dominant in business and academia....
Should Whistleblower Reward Laws be Capped?
The SEC is expected to approve a proposed rule change that could limit the amount of awards paid to whistleblowers, despite evidence that shows...
How Hedge Fund Performance Fees Fail Investors
In the hedge fund industry, there is a material disconnect between funds’ lifetime performance and lifetime incentive fees for managers. A new study analyzes...
Do People Think Finance Benefits Society?
A new paper seeks to measure popular sentiment toward finance based on mentions of “finance” in millions of books, spanning eight languages and hundreds...
