{"id":4646,"date":"2020-03-18T16:33:29","date_gmt":"2020-03-18T08:33:29","guid":{"rendered":"http:\/\/blog.rchss.sinica.edu.tw\/wwchu\/?p=4646"},"modified":"2020-03-18T16:41:36","modified_gmt":"2020-03-18T08:41:36","slug":"lazonick-profits-without-prosperity-hbr","status":"publish","type":"post","link":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/?p=4646","title":{"rendered":"Lazonick: Profits Without Prosperity HBR"},"content":{"rendered":"<div>\n<ul>\n<li><a href=\"https:\/\/hbr.org\/search?term=william%20lazonick\">William Lazonick<\/a><\/li>\n<\/ul>\n<\/div>\n<div>From the September 2014 Issue, Harvard Business Review<\/div>\n<p><a href=\"https:\/\/hbr.org\/2014\/09\/profits-without-prosperity\">https:\/\/hbr.org\/2014\/09\/profits-without-prosperity<\/a><\/p>\n<h2>(\u4f5c\u8005\u6709\u65b0\u66f8\uff1aPredatory Value Extraction: How the Looting of the Business Corporation Became the US Norm and How Sustainable Prosperity Can Be Restored,\u00a0<strong>William Lazonick<\/strong><span style=\"font-size: 16px\">\u00a0and\u00a0<\/span><strong>Jang-Sup Shin, Oxford UP, 2019)<\/strong><\/h2>\n<p>\u80a1\u4efd\u56de\u8cfc\u7684\u4f5c\u7528\u70ba\u4f55\uff1f\u57282003-2012\u5e74\u9593\uff0c\u7f8e\u570b\u4e0a\u5e02\u516c\u53f8S&amp;P500\u4e2d449\u5bb6\u516c\u53f8\uff0c\u7528\u4e8654%\u7684\u6536\u76ca(2.4\u5146\u7f8e\u5143)\u4f86\u8cb7\u56de\u5176\u80a1\u4efd\uff0c\u5e7e\u4e4e\u5168\u662f\u5728\u5e02\u5834\u4e0a\u8cfc\u8cb7\uff0c\u5176\u991837%\u7528\u4f86\u5206\u7d05\uff0c\u5269\u4e0b\u6975\u5c11%\u624d\u7528\u4f86\u9032\u884c\u6295\u8cc7\uff01 \u57282012\u5e74\uff0c\u5168\u7f8e500\u500b\u6240\u5f97\u6700\u9ad8\u7684CEO\u5e73\u5747\u6bcf\u4eba\u5f97\u523030.3\u767e\u842c\uff0c42%\u4f86\u81eastock options, 41% stock awards\uff0c\u4ea6\u5373\u80a1\u4efd\u56de\u8cfc\u5728\u77ed\u671f\u5167\u53ef\u4ee5\u63d0\u5347\u80a1\u7968\u50f9\u683c\uff0c\u6539\u5584EPS\u3002<\/p>\n<p>\u6230\u5f8c\u81f31980\u5e74\u4ee3\u4e4b\u524d\uff0c\u7f8e\u570b\u516c\u53f8\u5c0d\u6536\u76ca\u63a1\u53d6retain-reinvest\u505a\u6cd5\uff0c\u4fc3\u9032value creation\u800c\u975evalue extraction\u30021970\u5e74\u4ee3\u672b\u958b\u59cb\u63a1\u53d6\u964d\u4f4e\u6210\u672c\u3001\u589e\u52a0\u5206\u7d05\u7684\u7b56\u7565\uff0cdownsize-and-distribute\u30020.1%\u6240\u5f97\u5206\u984d\u589e\u81f311.3%\/2012\u5e74\u3002\u85aa\u8cc7\u505c\u6eef(\u53ea\u67091998-2000\u589e\u4e862%)\u3002<\/p>\n<p>Good buybacks: tender offers, a way for executives to have large share and care about the company\u2019s future. (maybe 5% of buybacks)<\/p>\n<p>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.<\/p>\n<p>A related issue is the notion that the CEO\u2019s obligation is to maximize shareholder value \u201cMSV\u201d. (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.<\/p>\n<p>Reform the system; put an end to open-market buybacks; rein in stock-backed pay; transform the boards.<\/p>\n<p>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\u2019s lobbying, the government launched the National Nanotechnology Initiative (NNI) in 2001, through 2013 Intel\u2019s 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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>William Lazonick From the September 2014 Issue, Harvard Business Review https:\/\/hbr.org\/2014\/09\/profits-without-prosperity (\u4f5c\u8005\u6709\u65b0\u66f8\uff1aPredatory Value Extraction: How the Looting of the Business Corporation Became the US Norm and How Sustainable Prosperity Can Be Restored,\u00a0William Lazonick\u00a0and\u00a0Jang-Sup Shin, Oxford UP, 2019) \u80a1\u4efd\u56de\u8cfc\u7684\u4f5c\u7528\u70ba\u4f55\uff1f\u57282003-2012\u5e74\u9593\uff0c\u7f8e\u570b\u4e0a\u5e02\u516c\u53f8S&amp;P500\u4e2d449\u5bb6\u516c\u53f8\uff0c\u7528\u4e8654%\u7684\u6536\u76ca(2.4\u5146\u7f8e\u5143)\u4f86\u8cb7\u56de\u5176\u80a1\u4efd\uff0c\u5e7e\u4e4e\u5168\u662f\u5728\u5e02\u5834\u4e0a\u8cfc\u8cb7\uff0c\u5176\u991837%\u7528\u4f86\u5206\u7d05\uff0c\u5269\u4e0b\u6975\u5c11%\u624d\u7528\u4f86\u9032\u884c\u6295\u8cc7\uff01 \u57282012\u5e74\uff0c\u5168\u7f8e500\u500b\u6240\u5f97\u6700\u9ad8\u7684CEO\u5e73\u5747\u6bcf\u4eba\u5f97\u523030.3\u767e\u842c\uff0c42%\u4f86\u81eastock options, 41% stock awards\uff0c\u4ea6\u5373\u80a1\u4efd\u56de\u8cfc\u5728\u77ed\u671f\u5167\u53ef\u4ee5\u63d0\u5347\u80a1\u7968\u50f9\u683c\uff0c\u6539\u5584EPS\u3002 \u6230\u5f8c\u81f31980\u5e74\u4ee3\u4e4b\u524d\uff0c\u7f8e\u570b\u516c\u53f8\u5c0d\u6536\u76ca\u63a1\u53d6retain-reinvest\u505a\u6cd5\uff0c\u4fc3\u9032value creation\u800c\u975evalue extraction\u30021970\u5e74\u4ee3\u672b\u958b\u59cb\u63a1\u53d6\u964d\u4f4e\u6210\u672c\u3001\u589e\u52a0\u5206\u7d05\u7684\u7b56\u7565\uff0cdownsize-and-distribute\u30020.1%\u6240\u5f97\u5206\u984d\u589e\u81f311.3%\/2012\u5e74\u3002\u85aa\u8cc7\u505c\u6eef(\u53ea\u67091998-2000\u589e\u4e862%)\u3002 Good buybacks: tender offers, a way for executives to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,1],"tags":[],"class_list":["post-4646","post","type-post","status-publish","format-standard","hentry","category-reflections","category-international-economics","category-1"],"_links":{"self":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts\/4646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4646"}],"version-history":[{"count":4,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts\/4646\/revisions"}],"predecessor-version":[{"id":4651,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts\/4646\/revisions\/4651"}],"wp:attachment":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}