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> We establish that the proximate cause of these (relative) wage effects are changes in rent-sharing practices following the appointment of business managers A
by jakewins 5y ago
> We establish that the proximate cause of these (relative) wage effects are changes in rent-sharing practices following the appointment of business managers
And top level metrics remain constant. So no benefits to stock owners, just rent seeking management at the expense of the firms attractiveness as an employer. Nice.
- itsdrewmiller 5y agoKeep reading: "The reduction in wages following the accession of a business manager leads to an increase in profits: the return on assets (ROA) increases by 3 percentage points in the US and by 1.5 percentage points in Denmark. In the US, we also find an increase of about 5% in the stock market values of companies that appoint business managers."
- crooked-v 5y agoOver what timeframe, though? The whole "optimize for next quarter and ignore the next five years" issue is pretty well-known.
- jakewins 5y agoOh weird, I interpreted their summary in the abstract as the opposite: > consistent with our first set of results, these business managers show no greater ability to increase sales or profits in response to exporting opportunities I guess “in response to export opportunities” is somehow key there. That negates my point then, and makes me wonder why they put the above sentence in the abstract while omitting the one you quote. Sneaky.
- phkahler 5y agoThat sounds like it could be a one-time gain. Not something you compound by changing managers periodically.
- cyanydeez 5y agoSame manages who are afraid of work from home.