From the September 2014 Issue, Harvard Business Review

(作者有新書:Predatory Value Extraction: How the Looting of the Business Corporation Became the US Norm and How Sustainable Prosperity Can Be Restored, William Lazonick and Jang-Sup Shin, Oxford UP, 2019)

股份回購的作用為何?在2003-2012年間,美國上市公司S&P500中449家公司,用了54%的收益(2.4兆美元)來買回其股份,幾乎全是在市場上購買,其餘37%用來分紅,剩下極少%才用來進行投資! 在2012年,全美500個所得最高的CEO平均每人得到30.3百萬,42%來自stock options, 41% stock awards,亦即股份回購在短期內可以提升股票價格,改善EPS。

戰後至1980年代之前,美國公司對收益採取retain-reinvest做法,促進value creation而非value extraction。1970年代末開始採取降低成本、增加分紅的策略,downsize-and-distribute。0.1%所得分額增至11.3%/2012年。薪資停滯(只有1998-2000增了2%)。

Good buybacks: tender offers, a way for executives to have large share and care about the company’s future. (maybe 5% of buybacks)

Bad ones: to manage stock prices. The SEC instituted Rule 10b-18 of the Securities Exchange Act, to allow repurchase of shares with few restrictions (25%), and without fear of price-manipulation charges. CEOs are serving their own interests.

A related issue is the notion that the CEO’s obligation is to maximize shareholder value “MSV”. (Michael Jensen) The MSV school ignores other participants, like the taxpayers and workers, who bear risk. Thus, MSV is a theory of value extraction, not value creation.

Reform the system; put an end to open-market buybacks; rein in stock-backed pay; transform the boards.

3 examples of hypocrisy: 1) Exxon Mobile, received $600 million a year in government subsidies for oil exploration, spends about $21 billion a year on buybacks, and no money on alternative energy research. 2) After Intel’s lobbying, the government launched the National Nanotechnology Initiative (NNI) in 2001, through 2013 Intel’s buyback amount was 4 times the NNI budget. 3) Pfizer argues that drug prices are high because they need high prices to support research. But from 2003-2012, Pfizer funneled an amount equal to 71% of its profits into buybacks.

2020-02-24 · · Categories: 未分類

Mainly Macro: Comment on macroeconomic issues

Tuesday, 18 February 2020

The left needs to campaign for social liberalism

This evidence suggests two important but provocative conclusions, which for me represent tentative hypotheses rather than anything firm. First, the key division in UK society today as far as elections are concerned is the social liberal/conservative divide, rather than ABCD class divisions or how left wing economic policy is.[2] Brexit was not an aberration but part of a trend. The big divide in the UK is partly age but mainly education. [3] The political right understands this, which is why elections will be fought on proxies for this divide. …

Second, social conservatism is not immutable.

The country is moving beyond nuclear power. But at what cost?

Jochen Bittner,Jan. 8, 2020
 Are the Germans irrational? Steven Pinker seems to think so. Professor Pinker, a Harvard psychologist, told the German newsmagazine Der Spiegel recently that if mankind wanted to stop climate change without stopping economic growth too, the world needed more nuclear energy, not less. Germany’s decision to step out of nuclear, he agreed, was “paranoid.”
2019-11-25 · · Categories: 未分類

From: 深圳宁南山 宁南山 2019/11/23


237 | 瞿宛文:台灣戰後農村土地改革的前因後果
原创: 瞿宛文 实验主义治理 2018/7月31日

239期 | 兼顧地主的土地改革:台灣實施耕者有其田的歷史過程
廖彥豪、瞿宛文 实验主义治理 2018/8月15日

240期 | 由鄉莊社會到現代社會:從土地所有制度演進重看台灣戰後初期農村土地改革
原创: 何欣潔 实验主义治理 2018/8/21

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