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Other Publications Year : 2011

In search of an alternative to shareholder value maximization

Gaël Giraud
Cécile Renouard
  • Function : Author

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.
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Dates and versions

hal-00609153 , version 1 (18-07-2011)

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  • HAL Id : hal-00609153 , version 1

Cite

Gaël Giraud, Cécile Renouard. In search of an alternative to shareholder value maximization. 2011, pp.31. ⟨hal-00609153⟩

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