Title: The shareholder value myth : how putting shareholders first harms investors, corporations, and the public /
Authors: Stout, Lynn A., 1957-
Publisher: Berrett-Koehler,
Year: 2012
Subjects: Stockholders.; Corporate governance.; Corporations Investor relations; Corporations Valuation
Abstract: Executives, investors, and the business press routinely chant the mantra that corporations are required to "maximize shareholder value." In this pathbreaking book, renowned corporate expert Lynn Stout debunks the myth that corporate law mandates shareholder primacy. Stout shows how shareholder value thinking endangers not only investors but the rest of us as well, leading managers to focus myopically on short-term earnings; discouraging investment and innovation; harming employees, customers, and communities; and causing companies to indulge in reckless, sociopathic, and irresponsible behaviors. And she looks at new models of corporate purpose that better serve the needs of investors, corporations, and society.--Publisher description.
Contents: Introduction: "the dumbest idea in the world" -- The rise of shareholder value thinking -- How shareholder primacy gets corporate law wrong -- How shareholder primacy gets corporate economics wrong -- How shareholder primacy gets the empirical evidence wrong -- Short-term speculators versus long-term investors -- Keeping promises to build successful companies -- Hedge funds versus universal investors -- Making room for shareholder conscience -- Conclusion: "slaves of some defunct economist."