ESG, Corporate Governance & Future of the Firm

The US Government Loses As Much As $111 Billion Annually Due to Corporate Tax Dodging

Report: For every dollar spent on lobbying, the 50 largest corporations received more than $4,000 in government support. The US government is losing as much...

Stigler Center Talk: Uber and the Future of Work-On-Demand

David Plouffe,  board member and Chief Advisor at Uber, is coming to give a talk at the Stigler Center. Within seven years, Uber has managed...

Is There a Crisis in the Economic Theory of the Firm? Participants at Harvard Business School Conference Agree: Firms Try to Change the Rules...

A novel conference at Harvard Business School brought together top scholars in order to answer the question: Is Milton Friedman’s dictum that firms that...

The Heirs of John D. Rockefeller Divest from Fossil Fuels, Slam Exxon Mobil as “Morally Reprehensible”

The Rockefeller Family Fund announced on Wednesday that it will be divesting entirely from fossil fuels, due to the industry’s stance on climate change.   The...

Stigler Center Talk: Robert Bilott on How to Protect Our Drinking Water

The lawyer who has been dubbed "DuPont's Worst Nightmare" will discuss the legal, regulatory, political, and scientific challenges of addressing unregulated chemical contaminants in drinking...

“The United States Has Lost the Will and Ability to Prosecute Top Corporate Executives”

Pulitzer-Prize winning journalist Jesse Eisinger speaks about executive impunity and the key to justice in America.   In January, Sen. Elizabeth Warren released a scathing indictment...

Can a CEO in Good Conscience Not Be a Crony Capitalist?

The above question — posed by Brucest1, a reader of this blog — is extremely important and deserves a fully articulated answer. Brucest1 seems to conclude that a...

Latest news

Why Have Uninsured Depositors Become De Facto Insured?

Due to a change in how the FDIC resolves failed banks, uninsured deposits have become de facto insured. Not only is this dangerous for risk in the banking system, it is not what Congress intends the FDIC to do, writes Michael Ohlrogge.

Merger Law Reaches Acquirer Incentives and Private Equity Strategies

Steven C. Salop argues that Section 7 of the Clayton Act prohibits mergers in which the acquiring firm’s unilateral incentives and business strategy are likely to lessen market competition.

Tim Wu Responds to Letter by Former Agency Chief Economists

Former special assistant to the president for technology and competition policy Tim Wu responds to the November 27 letter signed by former chief economists at the Federal Trade Commission and Justice Department Antitrust Division calling for a separation of the legal and economic analysis in the draft Merger Guidelines.

Can the Public Moderate Social Media?

ProMarket student editor Surya Gowda reviews the arguments made by Paul Gowder in his new book, The Networked Leviathan: For Democratic Platforms.

Uninhibited Campaign Donations Risks Creating Oligarchy

In new research, Valentino Larcinese and Alberto Parmigiani find that the 1986 Reagan tax cuts led to greater campaign spending from wealthy individuals, who benefited the most from this policy. The authors argue that a very permissive system of political finance, combined with the erosion of tax progressivity, created the conditions for the mutual reinforcement of economic and political disparities. The result was an inequality spiral hardly compatible with democratic ideals.

Did the Meme Stock Revolution Actually Change Anything?

Many financial commentators thought that the surge of retail investors participating in the stock market, the most notable of whom boosted “meme stocks” like GameStop, would democratize corporate governance and improve prosocial firm behavior, including the promotion of environmental, social, and governance (ESG) goals. In new research, Dhruv Aggarwal, Albert H. Choi, and Yoon-Ho Alex Lee find evidence that the exact opposite took place.

The Kroger-Albertsons Merger Will Not Help Grocery Competition

Kroger and Albertsons say they need to merge to compete with Walmart. Claire Kelloway argues that what they really want is Walmart’s monopsony power, and permitting mergers on these grounds will only harm suppliers, workers, and consumers.