shareholder value

The Illusory Promise of “Stakeholderism”: Why Embracing Stakeholder Governance Would Fail Stakeholders

Stakeholderism—granting corporate leaders discretion to give weight to the interest of all stakeholders—should not be expected to deliver its purported benefits to...

Diversifying Corporate Boards — the Best Way Toward a Balanced Shareholder/Stakeholder System of Corporate Governance

Boards can recognize that their shareholders have needs beyond financial wealth maximization. Making corporate boards representative and diverse works better than co-determination...

Friedman’s Principle, 50 Years Later

In the mid-1980s, Milton Friedman’s view that the only social responsibility of business is to increase its profits became dominant in business...

Where Friedman Was Wrong

A new paper by Oliver Hart and Luigi Zingales argues that a company’s objective should be the maximization of shareholders’ welfare, not value.  In 1970,...

LATEST NEWS

Should the European Union Require Tech Firms to Adopt a Common Charger?

According to a new European Commission directive expected to be approved in the next few months, tech firms will have to use...

Chart of the Week: Economists Don’t Think Congress Should Make Price Gouging Illegal

Most economists disagree with a new bill in the US that would set limits on "unconscionably excessive prices," according to a recent...

Neoliberal Economists Are Giving Biden Bad Advice on Inflation

To spare the economy from the pain of further interest rate hikes, the President should aggressively pursue anticompetitive conduct by companies in...

How Would the Big Tech Self-Preferencing Bill Affect Users? 

The Senate looks to be nearing a vote on the American Innovation and Choice Online Act, which would prohibit gatekeeping digital platforms...

New eBook Revisits George Stigler’s Theory of Regulatory Capture 50 Years Later

To mark the 50-year anniversary of George Stigler’s seminal piece, “The Theory of Economic Regulation” we are publishing a new eBook examining...