Working Papers Press Review

November 30, 2017

What if the unwashed masses got to vote on companies’ strategies? (The Economist)

ANGLO-SAXON capitalism has had a bad decade. It is accused of stoking inequality and financial instability. A relentless pursuit of shareholder value has led big firms to act in ways that often seem to make the world a worse place.

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October 12, 2017

Serving Shareholders Doesn't Mean Putting Profit Above All Else (Harvard Business Review)

In an op-ed, Luigi Zingales and his co-author Oliver Hart write, "Is the only responsibility of business to maximize profits, as Milton Friedman famously argued in 1970? Many scholars and business people have criticized this idea on the grounds that companies should cater to employees and the community, not just to shareholders.

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September 21, 2017

THE BOTTOM LINE: The 'Trump trade' is back and Ray Dalio breaks down the bitcoin bubble (businessinsider)

Silverstein talks with University of Chicago Booth School of Business professor Luigi Zingales about whether companies should maximize market value.

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September 7, 2017

When a Company Is Making Money From the Opioid Crisis (theatlantic)

Some shareholders of a major drug distributor are arguing that the company's goals should be more in line with society's.

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August 29, 2017

Why companies shouldn’t maximize only profits (chicagoboothreview)

Maximizing shareholder value, the central mission of many corporate boards across the United States, has become a handy defense for questionable business decisions. In the past year alone, corporate directors have cited “a fiduciary duty” to make the most possible money for shareholders as justification for cutting large numbers of jobs, price gouging patients in need of lifesaving drugs, and investing in projects that harm the environment.

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August 1, 2017

No, Maximizing the Stock Price Is Not Job 1 for Company Directors (bloomberg)

Boards can and should consider “prosocial” goals, say economists at University of Chicago and Harvard.

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July 31, 2017

Uber CEOs and Shareholder Welfare (bloomberg)

Also the 10-year crisis anniversary, some Shkreli, blockchain, unicorns and buybacks.

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July 31, 2017

Where Friedman was wrong (ftalphaville)

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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July 29, 2017

This Isn't Quite The Refutation Of Friedman's Shareholder Value Concept Some Seem To Think (forbes)

An interesting paper from Oliver Hart and Luis Zingales which some seem to think refutes Milton Friedman's thoughts on the idea of shareholder value. This is commonly thought to hold that companies should just get on with maximising profits and the heck with the rest of it all.

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April 24, 2017

Cracking the Mystery of Labor's Falling Share of GDP (bloomberg)

Economists are very worried about the decline in labor’s share of U.S. national income. One reason they’re concerned is because when less of an economy’s wealth flows to workers, it exacerbates inequality and increases the risk of social instability. But another reason is that this trend throws a wrench in economists’ models.

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April 18, 2017

Wall Street has a gender gap in accountability, too (chicagoboothreview)

Female financial advisers are less likely than men to have a record of misconduct, but those who do are punished more severely than their male counterparts.

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April 17, 2017

Are Women Punished Harder by the Financial Industry? (chicagomag)

A new working paper finds that male financial advisers are considerably more likely to recover after they commit misconduct.

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April 12, 2017

Beyond United: How oligopolies hurt Americans’ pocketbooks (washingtonpost)

When White House press secretary Sean Spicer put both feet in his mouth on Tuesday, executives at United Airlines probably wanted to send him a fruit basket or 50. Talk of “Holocaust centers” has taken some of the spotlight off of the airline still dealing with the fallout from the videos of a bloodied passenger forcibly removed from a United flight.

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April 5, 2017

Bigger Corporations Are Making You Poorer (vice)

A wave of new research shows how as corporations get bigger, the share of money out there going to actual workers declines.

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March 31, 2017

Woś: Gdzie jest ciastko? Poszukiwania trwają (gazetaprawna)

Od czasu do czasu piszę tu o ciastku. To ciastko to bogactwo wytworzone przez gospodarkę.

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March 24, 2017

How female advisers can resist ‘taste-based discrimination’ at work (marketwatch)

Men are more likely to engage in professional misconduct, but women are more likely to be fired for it.

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March 23, 2017

The Cosmological and Temporal Implications of the GOP Tax Cut in the AHCA (prospect)

How state-of-the-art physics on the possibility of time flowing backward, rather than a base desire to favor the rich, influenced the retroactive tax cut now in Speaker Ryan’s bill.

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March 17, 2017

A punishing double standard for women on Wall Street (cbsnews)

Wall Street firms have been called out for bias against women, with some critics pointing to the financial industry’s male-heavy ranks and gender pay gap as evidence of sexism.

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March 16, 2017

Don’t blame robots for workers’ woes—blame corporate profits (livemint)

Economists typically think of the economy as a series of trade-offs between labour and capital. It seems money that should go to either of these is going to corporate profits.

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March 14, 2017

Female brokers punished more harshly for misconduct than males (ft)

US study finds male employees misbehave more often but receive more second chances.

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March 14, 2017

Women on Wall St. punished more severely than men for misdeeds (cnbc)

Gender discrimination on Wall Street is an issue even when it comes to punishing employees for misconduct.

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March 13, 2017

Double Standard in Advisor Punishment (barrons)

Women financial advisors who engage in misconduct face harsher punishment and worse career repercussions than their male counterparts, reports InvestmentNews, citing new research.

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March 13, 2017

Wells Fargo 25% More Likely to Punish Women Employees than Men, Study Says (fortune)

Not that she needs it, but the defiant girl statue has yet another reason to stare down that Wall Street bull.

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March 6, 2017

Profits and Productivity (growthecon)

One of the running topics here has been the relationship of markups and measured productivity growth.

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February 25, 2017

Why taxing robots is not a good idea (economist)

BILL GATES is an unlikely Luddite, however much Microsoft may have provoked people to take a hammer to their computers. Yet in a recent interview with Quartz, an online publication, he expressed scepticism about society’s ability to manage rapid automation.

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February 23, 2017

How the Democrats Can Hijack the Tax Reform Debate (prospect)

Just in case they want an economic policy, here’s one they can win on.

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January 26, 2017

Blame Monopolies for Short-Changing U.S. Workers (bloomberg)

There are several worrying trends in the global economy, such as rising inequality within countries and slowing productivity growth. But perhaps the most troubling of them is the fall in labor’s share of national income.

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January 21, 2017

Why mobile customers are better off under democratic govts (livemint)

From telecom wars to customer grievances on Twitter, economics helps across the world.

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Nov 29, 2016

¿Pesan los salarios cada vez menos en la renta nacional? (diariovasco)

La crisis ha transformado y alterado la “eterna” lucha entre los salarios y los beneficios empresariales. Hace ya un tiempo escribí un post sobre el peso decreciente de los salarios en la renta nacional tanto en nuestro entorno más cercano como en el mundo.

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Nov 21, 2016

Attention au langage, il compte pour le quart du PIB (letemps)

Les conversations sur les prix et les échanges ont longtemps été sacrifiées sur l’autel de l’analyse du comportement. L’économiste Deirdre McCloskey les replace au cœur du débat sur la croissance. Le discours anticapitaliste de certains auteurs français ne rend donc qu’un piètre service au pays.

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Jun 25, 2016

Study finds misbehaving brokers stick around (startribune)

One in 13 financial advisers and stockbrokers have engaged in some form of misconduct during their career, making them five times more likely to offend again than those with a clean record, according to a new study.

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Apr 8, 2016

Does Your Stockbroker Draw Complaints? Here’s How to Find Out (nytimes)

With the news this week that professionals who invest your retirement money will soon have to do so with your best interests in mind, many people may go shopping for a stockbroker to help them manage their life savings. But anyone who does (or has already) ought to examine a working paper that three professors released last month.

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