Showing results 1 - 10 of 46
| Mark Roe
April 13, 2021, Paper: "Stock-market short-termism—stemming from rapid trading and activists looking for quick cash—is, a widespread view has it, hurting the American economy. Because stock markets will not support corporate long-term planning, the thinking goes, companies fail to invest enough, do not do enough research and development, and buy back so much of their stock that their coffers are depleted of cash for their future. This…
| Mark Roe | Holger Spamann | Jesse Fried | Charles Wang
2021, Paper: "In July 2020, the European Commission published the “Study on directors’ duties and sustainable corporate governance” by Ernst & Young (EY). The Report purports to find evidence of debilitating short-termism in EU corporate governance and recommends many changes to support sustainable corporate governance. In this paper, we point out deep flaws in the Report’s evidence and analysis. We recently submitted the content of this…
| Mark Roe | Holger Spamann | Jesse Fried | Charles Wang
October 14, 2020, Paper: "In July 2020, the European Commission published the “Study on directors’ duties and sustainable corporate governance” by EY. The Report purports to find evidence of debilitating short-termism in EU corporate governance and recommends many changes to support sustainable corporate governance. In this paper, we point out deep flaws in the Report’s evidence and analysis. We recently submitted the content of this paper in…
| Mark Roe
July 31, 2020, Video, "The government announced and implemented a host of economic measures in response to the Covid-19 crisis, including partial suspension of its corporate insolvency regime. This panel discussed some global responses to the economic crisis in the context of business insolvency and evaluated if a separate relief enactment can help Indian businesses tide over it."…
| Mark Roe
June 26, 2020, Book Chapter, "Explains that favorable treatment of derivatives and financial repurchase agreements under bankruptcy law weakens market discipline during ordinary financial times and exacerbates financial failure during an economic downturn or financial crisis. Safe harbors for such instruments facilitate collateral runs and fire sales and encourage short-term financing, which benefit from such privilege. The purpose of the…
| Mark Roe
May 5, 2020, Opinion, "The COVID-19 pandemic looks likely to cause the biggest surge in bankruptcies that the United States' court system has ever experienced. Without an immediate increase in judicial capacity to manage the coming flood of cases, an even larger economic disaster awaits." …
| Mark Roe
Why America’s CEOs Are Talking About Stakeholder Capitalism. Mark Roe, November 4, 2019, Opinion, "When the US Business Roundtable recently renounced shareholder primacy, the shift – by an organization representing companies with combined annual revenue of more than $7 trillion – prompted a wide range of reactions, from welcoming to dismissive. But the move is primarily an attempt to keep activist shareholders and populist politicians at bay."…
| Mark Roe
The Law, Corporate Governance, and Economic Justice. Mark Roe, September 26, 2019, Paper, "The Chief Justice of the Delaware Supreme Court begins by invoking the New Deal, and expressing admiration for the way its goals and some of its social programs have been put into practice by Northern European social democracies. Most important are their protections for workers and the unemployed—protections the Judge finds deplorably absent in U.S. law…
| Mark Roe
Stock Market Short-Termism’s Impact. Mark Roe, December 2018, Paper, "Stock-market--driven short-termism is crippling the American economy, according to legal, judicial, and media analyses. Firms forgo the R&D they need, cut capital spending, and buy back their own stock so feverishly that they starve themselves of cash. The stock market is the primary cause: directors and executives cannot manage for the long term when their shareholders…
| Mark Roe | Robert Pozen
Six Months Isn’t ‘Long Term’. Robert Pozen, Mark Roe, August 20, 2018, Opinion, "President Trump tweeted on Friday that he had directed the Securities and Exchange Commission to study a suggestion from a business leader, later revealed as outgoing Pepsi CEO Indra Nooyi: “Stop quarterly reporting & go to a six month system.” The popular..."…