The following audio and video were recorded on May 1, 2013.
Shareholder Value Theory: Myth or Motivator? 5-1-13
Running Time: 01:28:45
Conventional 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
- Introduction: Hon. Lee Liberman Otis, Senior Vice President & Faculty Division Director, The Federalist Society
American Enterprise Institute