Stakeholder orientation vs. shareholder value

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Stakeholder orientation vs. shareholder value

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dc.contributor.author Rose, Caspar en_US
dc.date.accessioned 2009-02-04T10:24:52Z
dc.date.available 2009-02-04T10:24:52Z
dc.date.issued 2004-01-21T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/6796
dc.description.abstract Abstract: This article analyzes the conflict of interests between shareholders and other stakeholders, including when such conflicts of interests may arise. It is argued that shareholder value cannot be justified simply by referring to any prerogative property rights of the shareholders. Instead, shareholder value coincides with the efficient hypothetical perfect contract. However, due to contractual failures in certain bargain situations, management may be unable to "internalize the firms externalities". This means that in these situations there is a tradeoff between a broad duty of loyalty for management in listed firms and other traditional remedies. The theoretical insights are applied on a case from the Danish Supreme Court (Louis Poulsen A/S) where the interests of the stakeholders were decisive. However, it is shown that the verdict may instead harm the relevant stakeholders illustrating how cautious the legal system should use a doctrine based on the "company’s interests". In addition, the notion of a firm’s social responsibility is critically evaluated together with the associated pitfalls of accepting this concept. en_US
dc.format.extent 46 s. en_US
dc.language eng en_US
dc.relation.ispartofseries LEFIC working paper;2003-16 en_US
dc.subject.other virksomhedens interessenter en_US
dc.subject.other aktionærer en_US
dc.subject.other ansatte en_US
dc.subject.other stakeholder values en_US
dc.subject.other louis poulsen en_US
dc.title Stakeholder orientation vs. shareholder value en_US
dc.type wp en_US
dc.accessionstatus modt04jan21 mielmo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.corporationshort Center for Law, Economics and Financial Institutions at CBS. LEFIC en_US
dc.contributor.department Institut for Finansiering en_US
dc.contributor.departmentshort LEFIC en_US
dc.contributor.departmentuk Department of Finance en_US
dc.contributor.departmentukshort DF en_US
dc.idnumber x656378211 en_US
dc.publisher.city København en_US
dc.publisher.year 2003 en_US
dc.title.subtitle a matter of contractual failures en_US


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