The Shareholder Wealth Maximization Norm and Industrial Organization
نویسندگان
چکیده
منابع مشابه
Shareholder Wealth Maximization and Social Welfare: A Utilitarian Critique
Many scholars and managers endorse the idea that the primary purpose of the !rm is to make money for its owners. This shareholder wealth maximization objective is justi!ed on the grounds that it maximizes social welfare. In this article, the !rst of a two-part set, we argue that, although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our curr...
متن کاملShareholder wealth and firm risk
The evidence presented here is inconsistent with variants of corporate finance theory which hold that the option properties of growth opportunities or asset substitution incentives are first-order determinants of equity values, but it is supportive of risk management and capital structure theories that emphasize the costs of cash flow volatility. Specifically, controlling for known determinants...
متن کاملShareholder Wealth Effects of MANAGEMENT Regulatory COMPLIANCE
Purpose: This paper addresses whether and how the Sarbanes-Oxley Act of 2002(SOX) affects shareholder wealth (firm value) by focusing on the trade-off between improved corporate governance leading to a lower cost of capital and increased managerial compliance costs of regulations. Design/Methodology: We use an analytical model of solving the management utility maximization function and the cha...
متن کاملB2B eMarketplace Announcements and Shareholder Wealth
12 The advent of the Internet as an instrument for business commerce has fundamentally altered the economy by ushering in increased efficiencies and more transparent markets. Since businesses started conducting Internet transactions in 1995, the growth has been impressive. Forrester Research estimates that worldwide electronic commerce (e-commerce) revenues were about $650 billion in 2000 and p...
متن کاملForeign Direct Investments and Shareholder Wealth: the Singapore Evidence
This study examines the stock return responses to the announcements of foreign direct investments (FDI) by Singapore companies. The standard event study methodology is used to ascertain the abnormal returns around the announcement day (day 0). The study covers the period from 1989 to 1994 with a sample size of 70 events. The announcement effect is positive and significant around the announcemen...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: University of Pennsylvania Law Review
سال: 2001
ISSN: 0041-9907
DOI: 10.2307/3312905