From Hired Hands to Co-Owners: Compensation, Team Production, and the Role of the CEO

2009 ◽  
Vol 19 (4) ◽  
pp. 471-496 ◽  
Author(s):  
John R. Boatright
Keyword(s):  
Financial Crisis ◽  
Stock Options ◽  
Chief Executive ◽  
Production Model ◽  
Competitive Environment ◽  
Team Production ◽  
Current Financial Crisis ◽  
And Control ◽  
Standard Agent

ABSTRACT:In the 1990s, the role of the chief executive officer (CEO) of major United States corporations underwent a profound transformation in which CEOs went from being bureaucrats or technocrats to shareholder partisans who acted more like proprietors or entrepreneurs. This transformation occurred in response to changes in the competitive environment of U.S. corporations and also to the agency theory argument that high levels of compensation by means of stock options helped to overcome the agency problem inherent in the separation of ownership and control. Some critics charge that this new CEO role is objectionable for a variety of reasons, which may also be applicable to the current financial crisis in which CEO misconduct may have played a part. These objections are based largely on a team production model of corporate governance, which is held by these critics to be superior to the standard agent-principal model. This article examines the objections offered by critics of the changed role of the CEO and argues that their negative assessment of this development and their use of the team production model to support their conclusions are not warranted. CEOs have changed from hired hands to co-owners, and this change may have contributed in some measure to the current financial crisis. However, in determining the morally preferable role of the CEO, care must be taken not to discard what is sound in the changed role.

scholarly journals Corporate governance and performance of Italian gambling SMEs during recession

2018 ◽  
Vol 30 (3) ◽  
pp. 1939-1958 ◽  
Author(s):  
Fabio La Rosa ◽  
Francesca Bernini
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Boards Of Directors ◽  
Global Financial Crisis ◽  
Negative Relationship ◽  
Chief Executive ◽  
Positive Role ◽  
Firm Level ◽  
Content Type

Purpose This study aims to explore how the economic recession and some corporate governance (CG) provisions can affect the performance of Italian gambling small and medium-sized enterprises (SMEs) across different business segments. Design/methodology/approach This study uses a panel sample of 2,135 observations before and during the global financial crisis. Specifically, the roles of ownership, boards of directors, chief executive officer gender and gambling business segments are investigated in the Italian gambling market. Findings Ownership concentration has a negative relationship with the performance of foreigner- and financial-owned firms, while boards exert a positive role on performance. Interestingly, the financial crisis does not impact the performance of Italian gambling SMEs and some business segments, such as bingo, perform even better during the crisis. Research limitations/implications Further investigations should analyze the role of single games on firm performance. The consumer- and firm-level examinations offer very different perspectives and scholars should be aware of this when investigating the gambling industry. Practical implications This study might help both policymakers and other gambling firms, such as casinos, to better understand which appropriate CG model should be adopted and how it can positively influence performance, especially in recessionary times. Originality/value This study contributes to studies on hospitality and tourism by focusing on the complementary role of gambling SMEs with respect to casinos. It also increases knowledge on the role of CG in privately owned gambling firms, which thus far has been scantly investigated by scholars.

scholarly journals Keynes and the 2008-9 crisis

2010 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Michael Barratt Brown
Keyword(s):  
Sustainable Development ◽  
Financial Crisis ◽  
Income Inequality ◽  
Political Strategies ◽  
Monetary Policies ◽  
International Currency ◽  
Current Financial Crisis

Since late 2008, together with the current financial crisis we can see a return of the Keynes’s proposals, including the proposal to create an international currency (Bancor). This paper reflects on some of these measures, the effectiveness of monetary policies, the growing income inequality, the new role of banks, political strategies of governments to address the crisis and the opportunities for combining the economical recovery with measures to promote a more sustainable development..

Financial Reforms and Financial Crisis: The Korean Case

1999 ◽  
Vol 02 (03) ◽  
pp. 265-284 ◽  
Author(s):  
Junggun Oh ◽  
Donghyun Park
Keyword(s):  
Financial Crisis ◽  
Foreign Capital ◽  
Vicious Cycle ◽  
Corporate Financing ◽  
Financial Reforms ◽  
Policy Issues ◽  
Lower Productivity ◽  
Small Measure ◽  
Current Financial Crisis

We assess the role of financial reforms and liberalization in Korea's financial crisis, which erupted in late 1997. We first examine financial reforms carried out since the early 1980s and their effects on corporate financing as well as on the current account. We then analyze policy issues associated with the current financial crisis. Our main conclusion is that the crisis is due in no small measure to the unbalanced nature of Korea's financial reforms — extensive external liberalization combined with inadequate internal liberalization. The massive inflow of foreign capital associated with external liberalization exacerbated the over-investment problem that already existed in the 1970s. The inefficiencies of Korea's manufacturing corporations and financial institutions mutually reinforced each other, producing a vicious cycle of ever lower productivity of capital. The key to Korea's recovery thus lies in successful restructuring of both its financial and corporate sectors.

Morphogenesis of a New Human Herpes-Type Virus Isolate (Sasha Virus)

1973 ◽  
Vol 31 ◽  
pp. 592-593
Author(s):  
R. F. Zeigel ◽  
W. Munyon
Keyword(s):  
Virus Isolate ◽  
Calf Serum ◽  
Uranyl Acetate ◽  
Human Herpes ◽  
Human Embryonic Lung ◽  
Human Herpes Virus ◽  
Intracytoplasmic Inclusions ◽  
Hel Cells ◽  
And Control

In continuing studies on the role of viruses in biochemical transformation, Dr. Munyon has succeeded in isolating a highly infectious human herpes virus. Fluids of buccal pustular lesions from Sasha Munyon (10 mo. old) uiere introduced into monolayer sheets of human embryonic lung (HEL) cell cultures propagated in Eagles’ medium containing 5% calf serum. After 18 hours the cells exhibited a dramatic C.P.E. (intranuclear vacuoles, peripheral patching of chromatin, intracytoplasmic inclusions). Control HEL cells failed to reflect similar changes. Infected and control HEL cells were scraped from plastic flasks at 18 hrs. of incubation and centrifuged at 1200 × g for 15 min. Resultant cell packs uiere fixed in Dalton's chrome osmium, and post-fixed in aqueous uranyl acetate. Figure 1 illustrates typical hexagonal herpes-type nucleocapsids within the intranuclear virogenic regions. The nucleocapsids are approximately 100 nm in diameter. Nuclear membrane “translocation” (budding) uias observed.

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