Shareholder Value Theory: Myth or Motivator? - Event Video
Faculty Division and the American Enterprise Institute
May 3, 2013Lynn A. Stout, Jonathan R. Macey, Alex J. Pollock, Lee Liberman Otis
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