by clare@gibit.co | 15 Aug 2020 | Corporate Finance, Corporate Governance
We often think of political connections as clearly favoring a company. Perhaps the most extreme example is Donald Trump owning around 500 businesses (collectively known as the Trump Organization), which may affect the decisions that he takes as President. But...
by clare@gibit.co | 26 Apr 2020 | Corporate Finance, The World Economy
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...
by clare@gibit.co | 29 Oct 2019 | Corporate Finance, The World Economy
China will soon become the largest economy in the world, but many Westerners (myself included) know very little about it. I’ve thus tried to educate myself about the Chinese economy, and earlier posted introductions to corporate governance in China and capital...
by clare@gibit.co | 29 Oct 2019 | Corporate Finance, The World Economy
Industry concentration has increased substantially in the US over the last two decades. But is this a problem? The obvious answer is yes – it allows companies to get away with high prices and low product choice, which is bad for consumers. But it may be that...
by clare@gibit.co | 10 Feb 2018 | Corporate Finance
The Importance of M&A Mergers and acquisitions (M&A) are arguably the most important decision that a company makes. Successful mergers can transform a company by combining complementary assets, unleashing economies of scale or scope, or allowing it to enter...
by clare@gibit.co | 7 Oct 2017 | Corporate Finance, Corporate Governance, Executive Pay, Responsible Business
Imagine you’re the Minister for Education, deciding how large to make a school district. Smaller school districts offer parents more school choice. For example, in Boston, there are 70 school districts within a 30-minute commute of the downtown area, so parents...
