Summary of Lynn Stout's The Shareholder Value Myth , livre ebook

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15 pages

English

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Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The Deepwater Horizon disaster was a tragedy on an epic scale not only for the rig and the eleven people who died on it, but also for the corporation BP. By June of 2010, BP had suspended paying its regular dividends, and its stock had plummeted to less than $30 per share.
#2 The Deepwater Horizon disaster is just one example of a larger problem that afflicts many public corporations today. That problem is called shareholder value thinking, and it says that public corporations exist to maximize shareholders’ wealth.
#3 The 1990s saw the emergence of the idea that corporations should serve only shareholder wealth, which was reflected in stock price. This idea became dominant by the turn of the millennium.
#4 The past dozen years have seen a daisy chain of corporate disasters, from massive frauds at Enron, HealthSouth, and Worldcom in the early 2000s to the near-failure and costly taxpayer bailout of many of America’s largest financial institutions in 2008.

Sujets

Corporate Finance

Economie gestion

General officer

Economics

Business

General

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Publié par	Everest Media LLC
Date de parution	11 mai 2022
Nombre de lectures	0
EAN13	9798822505124
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0150€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

Insights on Lynn Stout's The Shareholder Value Myth
Contents Insights from Chapter 1 Insights from Chapter 2
Insights from Chapter 1

#1

The Deepwater Horizon disaster was a tragedy on an epic scale not only for the rig and the eleven people who died on it, but also for the corporation BP. By June of 2010, BP had suspended paying its regular dividends, and its stock had plummeted to less than $30 per share.

#2

The Deepwater Horizon disaster is just one example of a larger problem that afflicts many public corporations today. That problem is called shareholder value thinking, and it says that public corporations exist to maximize shareholders’ wealth.

#3

The 1990s saw the emergence of the idea that corporations should serve only shareholder wealth, which was reflected in stock price. This idea became dominant by the turn of the millennium.

#4

The past dozen years have seen a daisy chain of corporate disasters, from massive frauds at Enron, HealthSouth, and Worldcom in the early 2000s to the near-failure and costly taxpayer bailout of many of America’s largest financial institutions in 2008.

#5

The idea that managers should seek to maximize share price is still conventional wisdom in many business circles and in the media. However, corporate theorists are beginning to challenge this thinking. They are suggesting that the primary purpose of a corporation is not to increase share price, but to serve the public interest.

#6

The new thinking on shareholder value and corporate purpose is shown in Part II, What Do Shareholders Really Value. It shows how the ideology of shareholder value maximization is based on incorrect factual claims about the economic structure of corporations.

#7

The most important function of boards of public companies is to balance between and mediate among the demands of different shareholders. Conventional shareholder value thinking ignores the fact that different shareholders have different values.

#8