scholarly journals The Pandemic and Shareholder Value

2021 ◽  
Author(s):  
Calin Valsan
Keyword(s):  
Corporate Governance ◽  
North America ◽  
Stock Market ◽  
Financial Crises ◽  
Shareholder Value ◽  
Corporate America ◽  
Real Economy ◽  
Radical Reform ◽  
Shareholder Capitalism ◽  
Normative Content

Shareholder value has driven corporate governance in North America for over a century. In the wake of significant financial crises and growing inequalities, corporate America decided in 2019 to embrace a more egalitarian model, in which all stakeholders matter equally. The brutal pandemic that wreaked havoc in the first half of 2020 exposed a startling disconnect between the real economy and the stock market. This disconnect is due to a gap between explicit and implicit corporate governance. While officially corporate America wants to convert to a new doctrine, the pandemic has shown that shareholder capitalism has remained the default model. Good intentions and official declarations are not enough in a system that has been specifically designed to serve the shareholders. If stakeholder capitalism is to succeed, it needs a clear normative content and perhaps a more radical reform of institutions and regulation.

The Financial Turn of Corporate America

Divested ◽  
2020 ◽  
pp. 84-110
Author(s):  
Ken-Hou Lin ◽  
Megan Tobias Neely
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Shareholder Value ◽  
Corporate America ◽  
Value Model ◽  
Nonfinancial Firms

This chapter examines financialization in the supposedly “nonfinancial” sector and how it results in greater inequality. The last 40 years have seen a turn in which many nonfinancial firms have increased their participation in financial markets. The chapter describes why nonfinancial firms took a financial turn in the late 1960s and early 1970s. It focuses on two aspects of financialization: the advent of nonfinancial firms actively lending and trading in financial markets and the rise of the shareholder-value model in corporate governance. It concludes by identifying the “winners and losers” created by these developments and how financialization has devastated most working Americans.

From shareholder value to private equity – the changing face of financialisation of the economy

2008 ◽  
Vol 14 (1) ◽  
pp. 63-75 ◽  
Author(s):  
John Evans ◽  
Pierre Habbard
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Trade Unions ◽  
Private Equity ◽  
Shareholder Value ◽  
Real Economy ◽  
Finance Industry ◽  
Investor Behaviour ◽  
Value Model

Across the OECD, a process of financialisation of the economy can be observed. Defined as the increasing dominance of the finance industry over the real economy and workers, financialisation can take different forms, including: growing instability and opacity of financial markets, increasing focus on shareholder value and the rise of alternative investors. This article reviews in particular the challenges to trade unions posed by the rise of the shareholder value model of governance in listed companies – as seen during the review of the OECD Corporate Governance Principles in 2004 – and more recently the boom in private equity buyout transactions. The trade union response to financialisation has followed two tracks: (i) to engage in regulatory advocacy at national and international levels for stakeholder approaches to corporate governance and financial markets and (ii) to mobilise workers' capital managed by pension funds to ensure responsible and long-term investor behaviour.

The Arrival of Shareholder Value in the European Auto Industry a Case Study Comparison of Four Car Makers

2002 ◽  
Vol 6 (1) ◽  
pp. 61-80 ◽  
Author(s):  
Ulrich Jürgens ◽  
Yannick Lung ◽  
Giuseppe Volpato ◽  
Vincent Frigant
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Capital Markets ◽  
Shareholder Value ◽  
State Ownership ◽  
Car Industry ◽  
Governance Systems ◽  
Recent Developments ◽  
Operational Activities ◽  
Market Pressures

The paper deals with changes in the corporate governance systems of major European flagship companies in the car industry – Fiat, PSA, Renault and Volkswagen. While all four companies are protected from immediate capital market pressures either by family or state ownership, they have clearly opened up to shareholder value principles in recent years. The central questions of the paper are: to what extent traditional characteristics of corporate governance have converged under the pressure of capital markets; the different approaches companies take to governance and how this affects their performance. To answer these questions, the paper discusses the recent developments of a shareholder value policy and the corresponding changes of targets and controls, as well as of incentive systems, in these companies. The paper also assesses what these companies use the capital markets for: do companies need the stock market to finance their operations? Or does the importance of the stock market rather lie in its function as a market for corporate control? What comes out clearly from the analysis is that none of the companies used the stock market for their operational activities, including major investments. The most important influence of the stock markets lies in the potential for hostile takeover. Even though all four companies investigated are to some degree protected by family or state ownership, they feel the need to raise a defence against this potential danger. As to performance indicators, the analysis shows that a shareholder value policy does not necessarily lead to better economic performance. On the contrary, the analysis shows that the more engaged companies are towards shareholder value policy, the less well they performed in terms of profit margins and returns on capital.

Media Coverage of Corporate Governance Scandals and Stock Market Returns

2011 ◽  
Author(s):  
Raymond Siu Yeung Chan ◽  
See Tin Tang ◽  
Roy F. Ying ◽  
Sun Wing Tam
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Media Coverage ◽  
Market Returns ◽  
Stock Market Returns

Corporate Governance and Stock Market Liquidity

2019 ◽  
Author(s):  
Erick Rading Outa ◽  
Nelson Maina Waweru ◽  
Peterson K Ozili
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Market Liquidity ◽  
Stock Market Liquidity

An empirical study on big data stock volatility forecasting algorithm based on multivariate hybrid criterion fuzzy model

2021 ◽  
pp. 002072092098399
Author(s):  
Zhang Xiao-Wen ◽  
Zeng Min
Keyword(s):  
Big Data ◽  
Stock Market ◽  
Fuzzy Model ◽  
Reference Value ◽  
Developed Countries ◽  
Theoretical Research ◽  
Prediction Algorithm ◽  
Real Economy ◽  
Stock Volatility ◽  
The Us

The fluctuation of the stock market has always been a matter of great concern to investors. People always hope to judge the trend of the stock market through the trend of the K line, so as to obtain the price difference through trading, Therefore, it is a theoretical research concerned by the academic circles to carry out empirical research through big data stock volatility prediction algorithm, so as to establish a model to predict the trend of the stock market. After decades of development, China's stock market has gradually matured in continuous exploration. However, compared with the stock market in developed countries, there are still imperfections. For example, the market value of China's stock market does not improve well with economic growth. Year-on-year growth and the development of the real economy. By studying the historical data from 2002 to 2017, we use the Multivariate Mixed Criterion Fuzzy Model (MMCFM) to predict the price changes in the stock market, and obtain the market in China through error statistical analysis. (SSE) is more unstable than the US stock market. Therefore, Multivariate Mixing Criterion (MMC) can be used as a reference indicator to visually measure market maturity. In this paper, we establish a multivariate mixed criteria fuzzy model, and use big data to predict the stock volatility. The algorithm verifies the reliability and accuracy of the model, which has a good reference value for investors.

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