The Federalist Society

Shareholder Value Theory: Myth or Motivator?

Faculty Division

Lynn A. Stout, Jonathan R. Macey, Alex J. Pollock

Start : Wednesday, May 1, 2013 4:30 PM

End   : Wednesday, May 1, 2013 6:00 PM

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AEI, Twelfth Floor
1150 Seventeenth Street, NW
Washington, DC 20036

The Shareholder Value MythConventional wisdom holds that corporations should maximize shareholder value. In her new book “The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public” (Berrett-Koehler, 2012), Lynn Stout argues that this is a harmful myth. According to Stout, shareholder value thinking leads managers to focus exclusively on short-term earnings to the detriment of investors, corporations, and the public. 

According to Jon Macey, however, while shareholder value maximization may be a myth, it helpfully constrains corporate managers. Leaving corporate managers with unconstrained choices — the real result of Stout's argument — would be far more dangerous.    

Join Macey and Stout as they debate shareholder value thinking and its implications for the corporate community, public policy arena, and public.


  • Lynn Stout, Cornell Law School
  • Jon Macey, Yale Law School
  • Moderator: Alex Pollock, AEI

If you would like to purchase Professor Stout's new book, please click here.

Registration details:

Please register through the American Enterprise Institute's event webpage.

There is no charge for this event.

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