Found 34 article(s) for author 'Mark Roe'

Those Short-Sighted Attacks on Quarterly Earnings

Those Short-Sighted Attacks on Quarterly Earnings. Robert Pozen, Mark Roe, October 7, 2016, Opinion, “The clamor against so-called corporate short-term thinking has been steadily rising, with a recent focus on eliminating the quarterly earnings report that public firms issue. Quarterly reports are said to push management to forgo attractive long-term projects to meet the expectations of investors and traders who want smooth, rising earnings from quarter to quarter.Link

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Giving Bondholders a Voice in Debt Restructuring

Giving Bondholders a Voice in Debt Restructuring. Mark Roe, December 14, 2015, Opinion. “Congress is poised to retroactively validate hardball restructuring tactics in the bond market that courts have struck down in major reorganization cases like that of Caesars Entertainment.  The underlying problem is that since the 1930s, the securities laws have barred basic free contracting among bondholders, via the Trust Indenture Act of 1939. Although the ban is exceedingly poor — one can think of few groups less in need of contractual guidance in the United States than institutional bondholders — the lurking amendment would worsen the plight…Link

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Those Short-Sighted Attacks on Quarterly Earnings

Those Short-Sighted Attacks on Quarterly Earnings. Robert Pozen, Mark Roe, , October 7, 2015, Opinion. “The clamor against so-called corporate short-term thinking has been steadily rising, with a recent focus on eliminating the quarterly earnings report that public firms issue. Quarterly reports are said to push management to forgo attractive long-term projects to meet the expectations of investors and traders who want smooth, rising earnings from quarter to quarter.Link

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Share buybacks are not the problem

Share buybacks are not the problem. Mark Roe, September 6, 2015, Opinion. “Stock buybacks are big and controversial. Hillary Clinton, the frontrunner for the US Democratic presidential nomination, says they undercut the American economy at the expense of needed investment. Larry Fink, head of BlackRock, wrote that buybacks ‘deliver immediate returns to shareholders’ while their companies are ‘underinvesting in innovation, skilled workforces or essential capital expenditures.’ High-end publications pronounce stock buybacks to be killing the American economy and, as buybacks spread in Europe and Asia, they have become more controversial…Link

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The Imaginary Problem of Short-Term Thinking

The Imaginary Problem of Short-Term Thinking. Mark Roe, August 17, 2015, Opinion. “Corporate “short-termism” may not be as interesting as Donald Trump’s latest gaffe, but it’s becoming an issue in the 2016 U.S. presidential race. Corporations, the idea goes, are being run too much with an eye toward quarterly earnings instead of the long-term good of their businesses, their employees and the economy. Investors are to blame, and something needs to be done. Hillary Clinton has proposed making changes to U.S. capital-gains taxes and holding periods to encourage long-term investments…Link

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A Smarter Way to Tax Big Banks

A Smarter Way to Tax Big Banks. Mark Roe, February 1, 2015, Opinion. “President Obama has reanimated the idea of taxing the debt of big banks to help stabilize the banking industry and prevent future financial crises. The administration argues that the new tax would discourage banks from taking on too much risk by making it ‘more costly for the biggest financial firms to finance their activities with excessive borrowing.’ The president’s bank tax is unlikely to gain traction in the new Congress, following the failure of similar proposals from the administration in 2010 and last year from former House Ways and Means Chairman Dave Camp…” Link

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Corporate governance and its political economy

Corporate governance and its political economy. Mark Roe, 2015, Paper. “To fully understand governance and authority in the large corporation, one must attend to politics. Because basic dimensions of corporate organization can affect the interests of voters, because powerful concentrated interest groups seek particular outcomes that deeply affect large corporations, because those deploying corporate and financial resources from within the corporation to buttress their own interests can affect policy outcomes, and because the structure of some democratic governments fits better with some corporate ownership structures than with others, politics can and does determine core structures of the large corporation…” Link

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The Fed’s Culture War

The Fed’s Culture War. Mark Roe, November 20, 2014, Opinion. “At a closed-door conference attended by senior bankers, regulators, and some academics, Federal Reserve Governor Daniel Tarullo and Federal Reserve Bank of New York President William Dudley used their bully pulpit to do something unexpected. Instead of focusing on how to bolster bank stability – channeling more capital toward the largest institutions, curbing their riskiest activities, and determining how to manage a failing bank without bailing it out – the officials discussed the bankers themselves…” Link

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Rolling Back the Repo Safe Harbors

Rolling Back the Repo Safe Harbors. Mark Roe, September 10, 2014, Opinion. “Ed Morrison, Judge Christopher Sontchi and I recently posted to SSRN our article recommending a major narrowing of the repo safe harbors, after presenting it at the Federal Reserve’s recent conference on Wholesale Funding Markets in which the Boston Fed president warned of the dangers in the repo market. Overall, we conclude that the Bankruptcy Code has aggressively and unwisely sought to regulate market liquidity and systemic risk, with the Code’s “safe harbors” from the normal bankruptcy machinery largely backfiring during the financial crisis…” Link

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The Examiners: Mark J. Roe on Municipal Distress

The Examiners: Mark J. Roe on Municipal Distress. Mark Roe, June 26, 2014, Opinion. “Detroit’s bankruptcy offers a cautionary tale for responsible municipal officials on how, and how not to, manage their budget. The pressure from pension obligations was a big factor in the Detroit bankruptcy. The simple lesson focuses on how municipalities save up to pay pensions to their retired police, firefighters, and other municipal employees. The city sets aside funds for the future retirement payments and expects earnings from the investments to help pay the pensions…” Link Verified October 12, 2014

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