01 September 2014
There is a fundamental flaw in the current understanding of the concept of shareholder value
For many years, directors of quoted companies have declared that the primary objective of their company is ‘to maximise shareholder value’. Interestingly, however, they never explain how it fits into corporate governance, in terms of:
how they explain variations over time
Ask such directors to define shareholder value, and the majority will say that it equates to...