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Culture War Roundup for the week of September 11, 2023

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they do some things that might seem obscenely ridiculous in the absence of corruption,

I do not agree with this premise. It is not ridiculous; it is rational:

When Gateway Computers announced the appointment of Elizabeth Dole to its board of directors, its stock price jumped 13.66% that day. The Disney Company’s stock price went up 4.24% when actor Sidney Poitier was announced as a director. Why do firms appoint O.J. Simpson, Evander Holyfield, Billy Jean King, Deepak Chopra, Lynn Swann, and other celebrities to their boards? ... Our first question investigates the effect on shareholder wealth by the appointment of celebrity directors. On the whole, we find that such appointments enhance firm value. These findings lead to our second research question. How does the appointment of celebrity directors improve firm value? We propose as an explanation that these appointments enhance a firm’s visibility to investors. Celebrities on boards can enhance the public prestige and standing of a given board. A celebrity can make a corporate board more visible to both consumers and investors. Elberse (2007), for instance, notes how a celebrity provides free advertising for an organization. She further argues that this increased prominence due to the celebrity’s presence can increase the ability of the organization to secure more resources. In the case of a corporate board, this might mean the recruitment of high ability directors. Podolny (1993) contends that the presence of celebrities within an organization can provide it with an advantage in its competition with others. That is, the development of a board with high ability directors might provide a firm with a competitive advantage over rivals with less talented boards. Groysberg, Polzer, and Anger-Elfenbein (2010) study Wall Street equity analysts and conclude that groups benefit from having members who achieve high levels of individual performance or renown. They argue that the contribution of star individuals can drive organizational success indirectly by enhancing the group’s perceived status among critical external constituencies. Hence, celebrities on boards might improve a firm’s ability to attract new customers, find business partners, or obtain new capital from investors.

Ferris, Stephen P., et al. "Reaching for the stars: the appointment of celebrities to corporate boards." International Review of Economics 58 (2011): 337-358.

Why do you choose to focus on the former and not the latter?

Because I was criticizing the common claim that the latter is the only explanation, which is incorrect, because it is based on a misapprehension

celebrity

Hunter Biden is a celebrity?

That's not really answering the question, anyway. You're losing track of your motte. Your motte is supposed to be that it could be corruption or it could be not corruption. You can try to act like you're not a partisan cheerleader and simply give a balanced view, acknowledging that companies might do stuff like this for not corruption reasons and companies might do stuff like this for corruption reasons. Instead, you're giving 100% of your time and attention to cheerleading Your Team's position and just talking about plausible ways it could be not corrupt. Ignoring plausible ways it could be corrupt.

The point is that corporations indeed make board appointments because "they have some weird 'appearance' argument."

Instead, you're giving 100% of your time and attention to cheerleading Your Team's position and just talking about plausible ways it could be not corrupt. Ignoring plausible ways it could be corrupt

Do you really not understand the difference between:

  1. Argument A that X is true is a poor argument; and
  2. X is not true

I have discussed only #1, not #2.

Ignoring plausible ways it could be corrupt.

I have said several times that it could be corrupt.

The point is that corporations indeed make board appointments because "they have some weird 'appearance' argument."

Like, for example, celebrities. Do you have a citation for all those board appointments of, say, children of Chinese government officials (we can throw out a few other countries, too) that are totally, uh, above-board? Like, a cite from a fancy economics journal or something, not a cite from a DoJ prosecution statement?