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Tag Archives | maximizing shareholder value

Long term matters: An Achilles’ heel for buybacks?

By Raj Thamotheram (originally published by Investment& Pensions Europe Magazine) - Investors are salivating over possible US corporate tax cuts. But evidence suggests this excitement is misplaced, at least from the perspective of the end beneficiaries… [Cross-posted from Investment & Pensions Europe Magazine publication of October 2017 at https://www.ipe.com/analysis/long-term-matters/long-term-matters-an-achilles-heel-for-buybacks/10020866.article]

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Economist seeks to debunk ‘shareholder value’

By David M. Katz (originally published by CFO) - 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 and the principle that issuing stock has been one of the best […]

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Let’s talk about “maximizing shareholder value”

By Cullen Roche (originally published by Pragmatic Capitalism) – The idea of “maximizing shareholder value” (MSV) has been in the news a lot lately. This is an idea generally associated with free market capitalism that states corporations should be run primarily for the purpose of maximizing the value they create for owners…. [Cross-posted from Pragmatic Capitalism publication of […]

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Money for nothing

By Frederick Ampel (originally published by rAVe) - Long before the 1987 movie “Wall Street” and the now-legendary quote from the fictional Gordon Gecko “Greed is good” became part of the American business worlds’ verbal infrastructure, success, wealth and growth in business were built on the startlingly simple notion that to create, run and succeed in a […]

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R and D

By Dan Crawford (originally published by Angry Bear) – 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 […]

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Study finds that financial parasitism contributes to the high cost of drugs

By Nick Bearns (originally published by World Socialist Web Site) - An article published in the New York Times on Friday, authored by business and finance journalist Gretchen Morgenson, on the pharmaceutical industry and US drug prices, points to one of the most significant economic phenomena of the present day—the rise of financial parasitism… [Cross-posted from World Socialist Web Site […]

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Big pharma spends more on share buybacks, but R&D? Not so much

By Gretchen Morgenson (originally published by The New York Times) - Under fire for skyrocketing drug prices, pharmaceutical companies often offer this response: The high costs of their products are justified because the proceeds generate money for crucial research on new cures and treatments… [Cross-posted from The New York Times publication of July 14, 2017 at https://www.nytimes.com/2017/07/14/business/big-pharma-spends-on-share-buybacks-but-rd-not-so-much.html]

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Swinging the pendulum back to long-term thinking

By Maureen Milford (originally published by Directors and Boards) – Would a product like Kevlar — DuPont’s light-weight, super-strong fiber used in body armor that has saved thousands of lives — get to the marketplace today? Research and development began in the mid-1960s on what became Kevlar; it wasn’t introduced until 1971…. [Cross-posted from Directors […]

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The cause of corporate short-termism

By Emel Akan (originally published by Epoch Times) - The tension between managing for the long term and delivering good results for the next quarter is one of the greatest challenges corporate executives face. While CEOs talk about focusing on long-term value creation, they often fail to resist the lure or pressure of short-termism… [Cross-posted from Epoch […]

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