Earnings Reports and Shareholder Value Strategies

This chapter analyzes recent earnings from Alibaba and Mercado Libre, highlighting Mercado's significant growth amidst Alibaba's struggles and strategic spin-off. It discusses the implications of government risk on these companies, investor perceptions, and contrasts methods of returning value to shareholders through share buybacks versus dividends. The complexities of executive compensation and the effects of financial strategies on income inequality are also examined.