We often think of political connections as clearly favoring a company. Perhaps the most extreme example is Donald Trump owning around 500 businesses
Do Workers on Boards Protect Jobs in a Downturn?
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
Spillover Effects of Hedge Fund Activism
Hedge fund activism is a controversial topic. Prominent lawyer Marty Lipton argues that the long-term future of corporate America is being undermined
How Short-Term Activists Create Long-Term Value
Activist hedge funds are often seen as the epitome of all that's wrong with capitalism. They cut investment, fire employees, and break contracts to
A Layman’s Guide to Separating Causation from Correlation … and Noticing When Claims of Causality are Invalid
Imagine you're the Minister for Education, deciding how large to make a school district. Larger school districts offer parents more school choice. You
How Proxy Advisors Influence Voting Outcomes
Proxy advisors are playing an increasingly influential role in corporate governance, by providing investors with guidance on how to vote in director
CEOs Cut Investment To Sell Their Own Shares At High Prices
One of the most fundamental concerns with corporations is that they focus on short-term profit rather than investing for the long-term. This is a
Is Short Termism Really A Problem?
"Myopia [short-termism] is a first-order problem faced by the modern firm. In the last century, firms were predominantly capital-intensive, but
Conflicts of Interest Among Proxy Advisors
The Importance of Proxy Advisors Proxy advisors play a critical role in corporate governance. One important way in which shareholders exert