The only valid purpose of a firm is to create a customer Lynn stout's book, the shareholder value myth, is a comprehensive critique of the idea that corporations should prioritize shareholder value above all else The book is divided into two parts Debunking the shareholder value myth and exploring what shareholders really value. Others care only about their own material returns A second important reason for the focus on shareholder value is executive compensation
Large institutional investors are increasingly influencing corporate policies In his final shareholder letter, jeff bezos explains a profoundly simple lesson most leaders overlook bezos explains why your goal should be to ‘create value,’ and how to do exactly that. While economists typically justify maximising shareholder value on the basis of economic efficiency arguments, vermaelen wants to give an ethical twist to this He proposes a new definition of ethical behaviour in business that is less tied to highly personal values Companies with strong corporate governance instill confidence in investors and minimize the risk of mismanagement or unethical.
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