When the markets go haywire, as they appear to be doing now, stock prices cease to provide useful signals about corporate value or the performance of the men and women in the C-suite. This is a major problem for the agency-cost theory of corporate governance, which has given us the so-called “monitoring board.” In what is now the dominant theory of corporate governance, the monitoring board sits atop the corporation and safeguards the value-creating work of executives primarily by monitoring changes in the company’s stock price. With its primary mandate of securing shareholder profit, the monitoring board exercises a limited … Read more
The following post comes to us from Sarah C. Haan, Associate Professor of Law at the University of Idaho College of Law.
With midterm elections six weeks away, the newest CPA-Zicklin Index has been published here. The 2014 Index is the fourth installment of the annual ranking of top publicly-held companies based on their voluntary political spending disclosure. The Index, a joint project of the Center for Political Accountability and the Zicklin Center for Business Ethics at the Wharton School, has this year expanded its scope from the top 200 to the top 300 companies on the S&P 500, … Read more