Corporate Governance: Stakeholder Value versus Shareholder Value

Stakeholder Capitalism, Corporate Governance and Firm Value∗

We consider the advantages and disadvantages of stakeholder-oriented firms that are concerned with employees and suppliers as well as shareholders compared to shareholderoriented firms. Societies with stakeholder-oriented firms have higher prices, lower output, and can have greater firm value than shareholder-oriented societies. In some circumstances, firms may voluntarily choose to be stakehol...

Corporate Governance and Financial Reporting at Daimler-Benz (DaimlerChrysler) AG: From a “Stakeholder” toward a “Shareholder Value”Model

Shareholder Power and Corporate Governance

The pattern of ownership and control of British industry is unusual compared with most other countries in that ownership is relatively dispersed. Typically the largest shareholder in any large listed company is likely to own a voting minority of the shares. Majority ownership by a single shareholder is unusual. It is not uncommon for the largest shareholding to be under 20 percent and in many c...

When do Appointments of Corporate Sustainability Executives affect Shareholder Value?

Understanding Firm Value and Corporate Governance

An impressive volume of careful empirical studies finds evidence that the strength of firms’ corporate governance tends to be positively correlated with their financial performance; that is, firms that score higher on some measure of governance tend to outperform those which score worse. These findings are a puzzle insofar as we expect those who decide how a firm is organized, including its cor...