Friday, April 25, 2014

Gimme cash now.

Here is a wonderful piece on the pitfalls of shareholder activism.  In a new world vision, corporations exist to funnel cash to shareholders, not to make things.  I doubt this movement toward the financialization of everything will last beyond the next economic crash.





Disgorge the Cash – The New Inquiry

2 comments:

  1. I agree. It seems more like a drive to create "fairness" to shareholders. I understand that but if cash was what you wanted, why give to companies whose sole purpose is to create goods?

    This could represent a change in the average shareholder. With the number of shareholders who want dividends, policy could change but I do not have much hope for that. For now, this is up to companies what they want to do.

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  2. It seems as if shareholders no longer believe in the companies they hold stocks for. You should invest in a company, because you believe they are making a valuable product that will return dividends. Not that dividends will be payed through strange compensation methods.

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