Shareholder value - conception and execution

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Chapter 1 in Beyond Shareholder Value, 2021, pp 9-37 from Edward Elgar Publishing

Abstract: The chapter outlines “shareholder-value†governance model. It explains its origin in the economic theory of corporations, and the notions that (a) shareholders “own†corporations and (b) executives are “agents†whose job is to deliver shareholder value. In the second part, the chapter describes how corporations have adopted the goal of maximizing shareholder value, and the tools applied to attain the goal. Total Shareholder Return (TSR), the metric used to measure executive performance, focuses on benefits for shareholders. With TSR as the instrument, corporations gear executives to deliver shareholder value.

Keywords: Business and Management; Economics and Finance; Law - Academic (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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