Insiders at companies that went public through Special Purpose Acquisition Companies (SPACs) made billions of dollars before the SPAC boom eventually fizzled out. Executives and early investors sold shares worth $22 billion through well-timed trades, profiting before the SPAC bust occurred. The WSJ’s analysis shows that insiders at about 80% of the 232 companies sold shares valued at less than $100 million, on average. The article also discusses the potential for insider trading and the need for greater transparency around SPACs. Overall, the article raises important questions about the role of insiders in the SPAC market and the need for greater accountability and regulation.
https://www.technologyreview.com/2023/06/01/1073799/the-world-is-finally-spending-more-on-solar-than-oil-production/
The world is now spending more money on solar energy than on oil production. This is a significant shift in the global energy market and marks a pivotal moment in the transition to renewable energy sources. The article cites a report by the International Energy Agency that predicts that solar energy will become the largest source of electricity by 2050. The report also highlights the declining cost of solar power and the increasing investment in renewable energy by countries around the world. The shift towards solar energy is seen as a positive step towards reducing greenhouse gas emissions and mitigating the effects of climate change.
Companies backed by private equity and venture capital firms may face challenges when trying to exit their investments. One issue is that many of these investments are funded through debt, which can create pressure to generate cash flow quickly and lead to risky financial strategies, such as borrowing to fund dividends. Additionally, the exit process can be complicated and time-consuming, with few easy options available. This can be especially challenging for private equity firms, which typically have a set timeline for exiting investments and returning capital to investors. Furthermore, institutional investors are increasingly turning to private credit as an alternative investment class, which may put pressure on private equity and venture capital firms to deliver strong returns. The challenges facing companies backed by private equity and venture capital firms highlight the need for careful consideration of investment strategies and a thoughtful approach to the exit process.
Multinational firms have been known to exploit gaps and mismatches between different countries’ tax systems to reduce their tax liability, which can result in significant revenue losses for governments. Despite efforts by governments to curb tax avoidance, the tendency of multinational firms to make tax-motivated payments to their foreign affiliates for intellectual property, interests, or services has not changed. This has led to growing concerns about the fairness and effectiveness of the international tax system and the need for greater cooperation between governments to address this issue. This article also reviews the rapidly growing empirical literature on international tax avoidance and surveys evidence on the main approaches used by multinational corporations to reduce their tax bills. Overall, the issue of international tax avoidance by multinational firms is a complex and challenging problem that requires ongoing attention and action by governments and policymakers.
Shell’s recent Annual General Meeting (AGM) has been criticized for being a step back towards “fossil fuel business as usual”. Shell’s AGM failed to set more ambitious targets for reducing its carbon emissions, despite the urgent need to address climate change. Instead, the company has been accused of prioritizing profits over environmental concerns, which has led to criticism from shareholders and environmental activists. The article also notes that Shell has been criticized for continuing to receive government subsidies for fossil fuel production, despite the negative impact on the environment and the urgent need to transition to renewable energy sources. However, the article acknowledges that Shell’s focus on profit maximization is a rational decision for the private business and is merely responding to market incentives. Overall, the article raises important questions about the role of fossil fuel companies in the transition to a low-carbon economy and the need for greater accountability and action to address climate change.