One of the many negative consequences of the COVID-19 pandemic is that companies may default. Companies going bankrupt are indeed less important than deaths, but they still have human consequences. Employees lose jobs, suppliers lose customers (and then may themselves default), and investors lose money. We often downplay the third effect for two reasons. One …
The European Central Bank is launching a €750 billion bond buying program to address the COVID-19 pandemic. Will this work? We obviously can’t predict the future. But we can analyse the past and study how the last major bond buying program – which addressed the Eurozone crisis – played out. In doing so, we must …
A hot topic is whether companies should have workers on their boards, to ensure they act in the interest of stakeholders, not just shareholders. This debate was ongoing even before COVID-19 – for example, Theresa May initially suggested that she’d mandate worker representation when she became UK Prime Minister, but then decided against it. It’s …
Do Workers on Boards Protect Jobs in a Downturn? Read More »
Hedge fund activism is a controversial topic. Prominent lawyer Marty Lipton argues that the long-term future of corporate America is being undermined “by a gaggle of activist hedge funds who troll through S.E.C. filings looking for opportunities to demand a change in a company’s strategy or portfolio that will create a short-term profit without regard …
On 6 April, I did a Twitter discussion on my book, hosted by Blackwell’s Bookshop. They asked me to start by providing 25-30 Tweets summarising the book, before opening it up to questions. I reproduce them below to provide the ideas of the book in a nutshell. Thanks very much for joining this discussion! I …
(This article was initially featured on the blog for my book, “Grow the Pie: How Great Companies Deliver Both Purpose and Profit”) Investors are increasingly scrutinizing the ESG performance of companies. This is a positive development – if CEOs know that investors evaluate them on ESG factors, not just short-term earnings, they’ll prioritise these factors …
The Inconsistency of ESG Ratings: Implications for Investors Read More »