The Shareholder Value Myth

How Putting Shareholders First Harms Investors, Corporations, and the Public

Lynn Stout (Author)

Publication date: 05/07/2012

The Shareholder Value Myth
In this radical debunking of pervasive myths about how corporations and investors behave, UCLA professor and legal celebrity Lynn Stout shows how—contrary to entrenched belief—"shareholder primacy" is not mandated by corporate law and actually harms shareholders themselves.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.

Read more...

Formats
Paperback - $18.95 - Members: $17.06
Paperback - $18.95 - Members: $17.06
PDF eBook - $18.95 - Members: $13.27
ePub - $18.95 - Members: $13.27
Quantity
1
1
2
3
4
5
6
7
8
9
10
   
Book Details
Overview
In this radical debunking of pervasive myths about how corporations and investors behave, UCLA professor and legal celebrity Lynn Stout shows how—contrary to entrenched belief—"shareholder primacy" is not mandated by corporate law and actually harms shareholders themselves.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.

About the Author
Excerpt

We also recommend

The Real-Time Revolution

Time has become a precious commodity, so business leaders who can save their customers’ time more effectively than compet...

How to Be an Inclusive Leader

We know why diversity is important, but how do we drive real change at work? Diversity and inclusion expert Jennifer Brow...

The Economics of Higher Purpose

Two distinguished scholars offer eight steps to help organizations discover and embrace an authentic higher purpose—somet...

Why Digital Transformations Fail

Former Procter & Gamble Vice President for IT and Shared Services, Tony Saldanha gives you the keys to a successful d...