More Cash, Less Innovation: The Effect of the American Jobs Creation Act on Patent Value

Author(s):  
Heitor Almeida ◽  
Po-Hsuan Hsu ◽  
Dongmei Li ◽  
Kevin Tseng

Firms can become less innovative following a sudden cash “inflow.” Specifically, multinational firms that were eligible to repatriate (and indeed repatriated) cash to the United States under the American Jobs Creation Act (AJCA) generate less valuable patents than otherwise similar firms. They also explore more. This effect only exists among firms in less competitive industries, firms with lower institutional ownership (IO), and firms with overconfident chief executive officers (CEOs); this effect is mainly driven by the reduction in the value of U.S.-originated patents. Our evidence suggests that, without appropriate governance, a cash windfall may lead managers to engage in riskier innovation strategy, which can destroy value.

2020 ◽  
Vol 117 (9) ◽  
pp. 4590-4600 ◽  
Author(s):  
Jackson G. Lu ◽  
Richard E. Nisbett ◽  
Michael W. Morris

Well-educated and prosperous, Asians are called the “model minority” in the United States. However, they appear disproportionately underrepresented in leadership positions, a problem known as the “bamboo ceiling.” It remains unclear why this problem exists and whether it applies to all Asians or only particular Asian subgroups. To investigate the mechanisms and scope of the problem, we compared the leadership attainment of the two largest Asian subgroups in the United States: East Asians (e.g., Chinese) and South Asians (e.g., Indians). Across nine studies (n= 11,030) using mixed methods (archival analyses of chief executive officers, field surveys in large US companies, student leader nominations and elections, and experiments), East Asians were less likely than South Asians and whites to attain leadership positions, whereas South Asians were more likely than whites to do so. To understand why the bamboo ceiling exists for East Asians but not South Asians, we examined three categories of mechanisms—prejudice (intergroup), motivation (intrapersonal), and assertiveness (interpersonal)—while controlling for demographics (e.g., birth country, English fluency, education, socioeconomic status). Analyses revealed that East Asians faced less prejudice than South Asians and were equally motivated by work and leadership as South Asians. However, East Asians were lower in assertiveness, which consistently mediated the leadership attainment gap between East Asians and South Asians. These results suggest that East Asians hit the bamboo ceiling because their low assertiveness is incongruent with American norms concerning how leaders should communicate. The bamboo ceiling is not an Asian issue, but an issue of cultural fit.


Author(s):  
Bryan G. Norton

Critics of environmentalism have often charged that the movement is “elitist.” By this is meant, among other complaints, that environmentalists are mainly members of the middle and upper classes who have achieved a comfortable level of economic well-being and who want to “lock up” natural resources, discourage economic growth, and withhold upwardly mobile job opportunities from less privileged economic groups in the society. Environmentalists, of course, dispute this criticism, arguing that it is unsupported by any reasonable interpretation of either environmentalists’ goals or the socioeconomic data. Nevertheless, the criticism strikes a sensitive nerve. It is interesting that the charge is directed at environmentalists, a majority of whom are liberals or progressives, both from the right, which claims environmental regulations choke off economic opportunities, and from the left, which argues that skirmishes over resource policy represent just one more episode in the ongoing war between the classes. What is undeniable is that the growth issue is the most difficult one facing environmentalists today. Here is a real dilemma. If environmentalists embrace economic growth in America, they apparently embrace endless sprawl, boom towns, high energy use, degradation of watersheds and wetlands, more chemicals—evils without end. If they oppose growth, however, they appear to favor unemployment, reduced wages, and economic stagnation. About growth, the dilemma encourages ambivalence and waffling: In 1977, the Rockefeller Brothers Fund published The Unfinished Agenda: The Citizen’s Guide to Environmental Issues, which emphasized a need for “a major transformation in human values” and argued that the United States has “enjoyed a development that is no longer possible for most [nations].” The United States must, the report urges, aid in “the transition from abundance to scarcity” and provide examples of how, “in a ‘Conserver Society,’ quality of life can be preserved (and, for many, increased) in an era of scarcity.” In the years since the Reagan antiregulatory revolution, however, environmentalists have also emphasized the importance of economic growth in achieving environmental goals. In a 1985 agenda document (environmentalists love to compose agendas), the Group of Ten (chief executive officers of ten leading environmental organizations) said: “Continued economic growth is essential.


1994 ◽  
Vol 02 (01) ◽  
pp. 509-533
Author(s):  
JOSE ALONSO ◽  
W BYGRAVE ◽  
L M GILLIN

Statistics and computer graphics, using linear and non-linear techniques, have been applied to entrepreneurial survey data in a study of the image analysis industry. Chief Executive Officers and Directors of Research have been interviewed in the United States, Europe, Japan and Australia. During the interview, a long questionnaire was completed. A mathematical model in terms of motivation, resources and performance measures has been developed to evaluate company positioning, and for future implementation as an expert system for high technology investment evaluation. A set of indices, derived using cluster and principal component analyses, describes groupings of variables which can be used to find the locus of a company position in an n-dimensional space. This position helps to establish whether the requisite technical, knowledge, marketing and financial infrastructures of the company are in keeping with the n-dimensional surfaces established by other companies in the field. These surfaces are then visualized using polynomial and Fourier parametric methods. Stratifications of the database by culture (as determined by geographical location), manufacturer-user-integrator classification, measures of innovation, and modes of deployment of financial resources are studied in terms of their taxonomic and performance characterisation abilities. Preliminary analyses reveal noticeable clustering of motivational variables by culture.


Author(s):  
Benjamin C. Waterhouse

This chapter demonstrates how the Business Roundtable—a consortium of chief executive officers from approximately one hundred and fifty of America's largest publicly and privately held corporations—holds a unique place in the history of business lobbying. It emerged in direct response to business's crisis of confidence and quickly became a powerful symbol of business leaders' desire to shape politics as well as an expression of their collective power. The first decade of the Roundtable's activism coincided with the dramatic shift of production away from the United States, the permanent decline of both productivity growth and unionization, and the supplanting of manufacturing by financial services as the nation's most important industry. The specific policy threats that drove the leaders of American big business to create the Business Roundtable reflected these shifting dynamics.


1952 ◽  
Vol 46 (2) ◽  
pp. 438-454 ◽  
Author(s):  
Joseph E. Kallenbach

On March 1, 1951, the Administrator of General Services certified that the proposed presidential tenure amendment submitted to the states by Congress in 1947 had been ratified by thirty-six states, thus making it a part of the United States Constitution. Adoption of this proposal, which becomes the Twenty-second Amendment to the United States Constitution, disposes of an issue that has agitated American politics periodically since the establishment of the Presidency. Hereafter no person will be eligible for a third term as President if he has served two full elective terms or one full elective term plus more than one-half of another term through succession to the office. President Truman, who would otherwise be rendered ineligible for reëlection following completion of his current term, is exempted from the ban by a qualifying clause which excludes from coverage “any person holding the office of President when this Article was proposed by the Congress.”Hostility to long continuance in office, particularly for executive officers, has been a prominent feature of American political thinking since Revolutionary times. Seven of the original state constitutions, all of which were formulated prior to adoption of the federal Constitution, carried clauses limiting reeligibility of the state chief executive.


Author(s):  
Terrance Jalbert ◽  
Mercedes Jalbert ◽  
Gino Perrina

In this paper the educational backgrounds of the Highest Paid Chief Executive Officers (CEOs) in the United States are examined.  Specifically, the extent to which the specific degree earned affects the salary received and other variables are examined.  The data for the study is the Forbes 800 CEO compensation data.  The time period for this study is the thirteen years from 1987-1999.  The results indicate that the total compensation that individuals earn as the CEO of the firm depends upon the undergraduate and graduate degree that the individual earns. Those with differing degrees are found to have been with the firm for a differing number of years, earned their undergraduate and graduate degrees at different ages, started working for the firm at different ages, became the CEO at differing ages, and were with the firm for differing number of years prior to becoming the CEO.


2019 ◽  
Vol 77 (5) ◽  
pp. 498-506
Author(s):  
Karen Mulligan ◽  
Seema Choksy ◽  
Catherine Ishitani ◽  
John A. Romley

Chief executive officer (CEO) compensation is highly scrutinized, with nonprofit organizations often receiving additional attention due to their tax-exempt status. Understanding hospital CEO compensation is of increasing importance as health care costs remain high and strong leadership is required to implement new health policies. This study documents CEO compensation at nonprofit hospitals in the United States for 2010 and 2015. We compare hospital CEO compensation with CEO compensation in other institution types, including nonhospital health care. We also explore changes in hospital CEO compensation over time and differences across states. We find CEOs at hospitals earn substantially less than CEOs of publicly traded companies though more than presidents of nonprofit institutions of higher education. Additionally, we find that the relationship between CEO compensation and hospital size was weaker in 2015 than in 2010, and substantial variation in CEO compensation exists across states.


2019 ◽  
Vol 8 (5) ◽  
pp. 47
Author(s):  
Amol Gupta

Since 1935, the number of hospitals managed by chief executive officers (CEOs) who are also physicians has decreased by 90%. Today, only 5% of hospitals in the United States are run by CEOs with a medical degree. However, higher ranked hospitals are more commonly run by CEOs with physician backgrounds. Additionally, overall quality scores in physician-run hospitals were 25% higher than those run by non-physicians. It is not clear whether this association between physician management and a higher quality of hospital management and health care results from the CEO’s professional (medical) background. Considering this, the following editorial discusses what characteristics of physicians and non-physicians may influence their capacity to lead a hospital and how that may impact the quality of management and health care within a hospital. Ultimately, this article aims to further the debate over physician versus. non-physician leadership, building a foundation for further research that may determine the characteristics of a CEO that are essential to guiding positive change in their hospital, refocusing health care back to its original intention: patient care.


2004 ◽  
Vol 2 (1) ◽  
pp. 73-85
Author(s):  
Kevin Banning

This research examines one explanation for why replacing the chief executive officer does not seem to improve firm performance despite its positive effect on financial markets: some new chief executive officers (CEOs) are able to negotiate favorable agency contracts, and therefore protect their positions, at the expense of performance that would benefit shareholders. In a longitudinal study of 150 publicly-traded firms in the United States, we found that the governance systems that align the CEO’s and owners’ interests, the mechanisms by which compliance with the agency contract is monitored, and the firm’s strategies and performance differed as a function of ownership concentration. In firms with dispersed ownership, new CEOs initiated changes favorable to them in the composition of the board of directors and in the level of and risk associated with their compensation. We also explore reasons for the differing patterns of institutionalized power resulting from the agency contract.


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