The Endurance of Shareholder Value Maximization as the Preferred Corporate Objective

2021 ◽  
Author(s):  
Andrew C. Inkpen ◽  
Anant K. Sundaram
Keyword(s):  
Shareholder Value ◽  
Value Maximization ◽  
Corporate Objective

scholarly journals Does Corporate Financialization Affect Corporate Environmental Responsibility? An Empirical Study of China

2020 ◽  
Vol 12 (9) ◽  
pp. 3696 ◽  
Author(s):  
Zhenghui Li ◽  
Yan Wang ◽  
Yong Tan ◽  
Zimei Huang
Keyword(s):  
Negative Impact ◽  
Shareholder Value ◽  
Environmental Responsibility ◽  
Corporate Environmental Responsibility ◽  
Social Effect ◽  
Value Maximization ◽  
Quantile Regression Model ◽  
Panel Quantile Regression ◽  
The Social ◽  
Moderating Role

This paper explores the effects and mechanisms of corporate financialization on corporate environmental responsibility (CER), using panel regression and the panel quantile regression model. The data is from 484 Chinese A-share non-financial listed companies, over the period 2008–2015. Some valuable results were achieved, as follows. Firstly, corporate financialization has a significantly negative impact on CER. We attribute this fact to the hard constraint of shareholder value maximization and the soft constraint of CER by taking an extrinsic analysis. Moreover, this negative impact shows heterogeneity. As the CER level increases, the remarkable restraint taken by the corporate financialization on CER is gradually weakened. This results in the corporation aiming not only at the shareholder value maximization, but also at the social effect, rather than only the former. In addition, the effect of the moderating role played by corporate leverage and ownership concentration in the influence of corporate financialization on the CER is captured in different kinds of corporations, while different performances are shown.

The Incompatibles

2018 ◽  
Author(s):  
Colin Crouch
Keyword(s):  
Corporate Governance ◽  
Shareholder Value ◽  
Consumer Welfare ◽  
General Interest ◽  
Market Theory ◽  
Consumer Sovereignty ◽  
Human Needs ◽  
Value Maximization

It is essential to the wider public legitimacy of the shareholder value maximization approach to corporate governance that share values can be maximized only by meeting consumers’ preferences and by using resources as efficiently as possible; and that therefore shareholders’ interests represent the general interest. The claim rests on the assumption that firms are operating in more or less pure markets. Since few markets are pure, theorists have moved from the idea of consumer sovereignty to that of consumer welfare, but this represents a sleight of hand. Further, not all human needs can be served by trading in markets. That leads us to the search for alternatives. There must be a variety of these, as one lesson of the failure of neo-liberal market theory to realize its ambitions is that there is no one best way. Neo-liberal dogmatism must be replaced by a genuinely liberal pursuit of diversity.

Corporations as Sempiternal Legal Persons

2019 ◽  
pp. 219-234
Author(s):  
Lynn Stout
Keyword(s):  
Corporate Governance ◽  
Shareholder Value ◽  
Intergenerational Equity ◽  
Future Generations ◽  
Time Machine ◽  
Corporate Objective ◽  
Legal Innovation ◽  
Shareholder Democracy ◽  
The Ideal

This chapter considers the corporation as a time machine, providing intergenerational equity, and intergenerational efficiency. That is, the corporation can be understood as a legal innovation that historically has functioned as a means of transferring wealth forward and sometimes backward through time, for the benefit of present and future generations. In this fashion the board-controlled corporation promotes both intergenerational equity and intergenerational efficiency. Logic and evidence each suggest, however, that the modern embrace of “shareholder value” as the only corporate objective and “shareholder democracy” as the ideal of corporate governance is damaging the corporate form’s ability to serve this economically and ethically important function.

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