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The Government Shareholder: Regulating Public Ownership Of Private Enterprise, Benjamin A. Templin
The Government Shareholder: Regulating Public Ownership Of Private Enterprise, Benjamin A. Templin
Benjamin A. Templin
During the subprime financial crisis of 2007-2009, the U.S. transformed its policies from a focus on privatization and deregulation to one where the government plays an active role as a market participant. By the end of the 2009 fiscal year, the U.S. government became one of the largest shareholders in the world owning a portfolio of investments valued at $959 billion. Some pundits condemned the investments as socialism. The sudden increase in the government portfolio is better understood as a Keynesian response to market failure rather than a change in the political economy. However, the dramatic increase in the government …
Expensing Isn't The Only Option: Alternatives To The Fasb's Stock Option Expensing Proposal, Benjamin A. Templin
Expensing Isn't The Only Option: Alternatives To The Fasb's Stock Option Expensing Proposal, Benjamin A. Templin
Benjamin A. Templin
This article reviews the arguments for and against the proposal of the Financial Accounting Standards Board (FASB) to require that corporations expense options. It identifies two major goals of the proposed rule: (1) clarity in financial statements, and (2) a reduction of corporate fraud by removing the incentive of options. To address these two goals, the article adopts a framework of Information Reforms v. Rules of the Game Reforms. The article starts with a history of FASB Statement No. 123 (Accounting for Stock-Based Compensation) and also analyzes proposed legislation in Congress attempting to block the measure, the proposed Stock Option …