The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public

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Berrett-Koehler Publishers, May 7, 2012 - Business & Economics - 120 pages
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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.
 

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Contents

THE DUMBEST IDEA IN THE WORLD
1
DEBUNKING THE SHAREHOLDER VALUE MYTH
13
WHAT DO SHAREHOLDERS REALLY VALUE?
61
SLAVES OF SOME DEFUNCT ECONOMIST
103
Notes
117
Index
129
About the Author
133
Copyright

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About the author (2012)

Lynn Stout is the Distinguished Professor of Corporate and Business Law, Clarke Business Law Institute, at Cornell Law School. Her work on corporate theory was cited by Supreme Court Justice John Paul Stevens in his dissent in Citizens United.

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