Filed in archive
markets
by leon on January 22, 2007

It's the great democratisation of the market where more citizens are the collective owners of the big companies. When society at large has some skin in the game, the companies become more accountable to society. It's a point I examine here when I look at the trend of the "universal owner".
Now there are many more constituents and vested interests, and that changes the game completely.
Just ask the ousted chief executive of Home Depot Robert Nardelli, a point made in this piece by The Wall Street Journal's Alan Murray that we have here via the San Diego Daily Transcript.
The trend of so many companies going private therefore might not be in the public interest. It's a point examined by Chicago Tribune columnist Andrew Leckey . Leckey draws on the comments made by Robert Mittelstaedt, dean of the W.P. Carey School of Business who, it must be said, is no friend of Sarbanes-Oxley. Just read his comments in this piece.
Still, Mittelstaedt now says that public companies have brought jobs, retirement plans and good investment and that the practice of private equity outfits to saddle the companies up with debt, and then unload it later might not be in the public interest.
More importantly, it undermines the way citizen investors are reshaping corporations and making them more accountable. It's a trend examined by Stephen Davis, Jon Lukomnik, David Pitt-Watson in their new book The New Capitalists, and summed up in their piece The Capitalist Manifesto: Managing the Rise of Citizen Investors.
The citizen investor, they argue, has laid down 10 commandments for delivering value:
1. Be profitable - create value.
2. Only grow when you can create value.
3. Pay people fairly to do the right thing.
4. Do not waste capital.
5. Focus where your skills are strongest.
6.Renew the organisation.
7. Treat customers, suppliers, workers and communities fairly.
8. Seek regulations which ensure your operations do not cause collateral damage and your competitors do not gain unfair advantage.
9.Stay clear of partisan politics.
10. Communicate what you are doing and be accountable for it.
Any trend that undermines these forces has to be watched carefully. That's in the public interest.
Tags:
citizen
investors
going
dark
SarbanesOxley
public
companies
public+interest
sarbanes+oxley
going+dar
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/50513
Mr Wong
Vote for Going dark: public companies and public interest:
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Rating: 10.00 out of 11 vote(s) cast.
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Response from:
BizzBites.com
The trend of so many companies delisting and going dark to escape the costs of Sarbanes-Oxley is not in the public interest because it undermines the rise of the citizen investor who is now reshaping corporations and changing the way they behave.
Response from:
The trend of so many companies delisting and going dark to escape the costs of Sarbanes-Oxley is not in the public interest because it undermines the rise of the citizen investor who is now reshaping corporations and changing the way they behave.
Response from:
news.fatpitchfinancials.com
The trend of so many companies delisting and going dark to escape the costs of Sarbanes-Oxley is not in the public interest because it undermines the rise of the citizen investor who is now reshaping corporations and changing the way they behave.
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