In search of an alternative to shareholder value maximization

Gaël Giraud and Cécile Renouard ()
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Cécile Renouard: PhD Program - ESSEC Business School

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Abstract: This paper argues that mainstream economic the- ory, far from providing an indisputable plea in favor of shareholder value-maximization, o ers striking arguments showing quite the opposite: pro t maximization cannot be a legitimate prioritar- ian goal for private rms. This opens the door for a widening of a company's goal. We argue that it should include the con- cern of all the stakeholders of a company, and cannot be ade-quately addressed uniquely by Pigouvian taxes or by property rights. Coming to terms with this broad understanding of a com-pany's goal should imply the internalization of the stakeholders' concern within the legal structure of the rm | as in the case of the scic in France or the cic in the UK.

Keywords: Corporate social responsibility; shareholder value; stakeholder value; incomplete markets; limited liability; property rights; collateral; cooperative (search for similar items in EconPapers)
Date: 2011-07-08
Note: View the original document on HAL open archive server: https://essec.hal.science/hal-00609153v1
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Published in 2011, pp.31

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Related works:
Working Paper: In search of an alternative to shareholder value maximization (2011)
Working Paper: In search of an alternative to shareholder value maximization (2011)
Working Paper: In search of an alternative to shareholder value maximization (2011)
Working Paper: In search of an alternative to shareholder value maximization (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00609153

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