Shareholder Value Perspective


Definition: Shareholder Value Perspective is the view that corporations are primarily instruments of its owners and their corporate purpose it to maximise long-term shareholder value.
Shareholder value proponents believe that the success of an organization can be measured by things as share price, dividends and economic profit. They regard stakeholder management rather as a means than as an end/purpose in itself. Unlike proponents od the stakeholder value perspective, they believe that social responsibility is not a matter for organizations, and think that society is best served by organizations pursuing self-interest and economic efficiency.



More on shareholder value perspective. More on corporate governance: Agency Problem, Belief System, Board of Directors, Boundary System, Chairman of The Board, more...


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