“The only positive thing you can say about maximizing shareholder value is that it’s simple,” says Margaret Blair, chair in free enterprise at Vanderbilt Law School. “But being simple doesn’t mean being smart.”
“Corporations are supposed to try to make a profit,” Blair says. “But economic theory acknowledges other participants in addition to investors. You’ve got creditors, suppliers, communities, and employees. All of these groups make ongoing investments in order for the firm’s enterprise to succeed.”
Full story at Futurity.
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