Maximizing Shareholder Welfare: A Normative Examination of Hart and Zingales' Corporate Governance Account: Maximizing Shareholder Welfare: A Normative Examination: S. Mejia and P. Bonaldi.
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| Title: | Maximizing Shareholder Welfare: A Normative Examination of Hart and Zingales' Corporate Governance Account: Maximizing Shareholder Welfare: A Normative Examination: S. Mejia and P. Bonaldi. |
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| Authors: | Mejia, Santiago1 (AUTHOR) smejia13@fordham.edu, Bonaldi, Pietro2 (AUTHOR) pbonaldi@andrew.cmu.edu |
| Source: | Journal of Business Ethics. Jan2025, Vol. 196 Issue 2, p309-323. 15p. |
| Subject Terms: | Shareholder primacy, Stockholder wealth, Ethics, Corporate governance |
| People: | Friedman, Milton, 1912-2006, Hart, Oliver, 1948-, Zingales, Luigi |
| Abstract: | In response to the growing criticisms to shareholder primacy, Oliver Hart, a Nobel Economics Prize recipient, and Luigi Zingales, a very well-known finance professor, have offered a revision to Milton Friedman's dominant account. Seeking to incorporate social and moral concerns into the objective function of the firm, they have proposed that managers should maximize shareholder welfare instead of shareholder value. Their account has been highly influential and reflects many of the substantive and methodological assumptions of corporate governance scholars within the law and economics literature. In this paper, we engage closely with their account from a normative perspective, unearthing and criticizing the implications of many of these assumptions. In doing so, we also formulate a set of principles necessary to ensure the ethical legitimacy of any proposal that puts shareholders at the center of the firm's objective function. [ABSTRACT FROM AUTHOR] |
| Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Education Research Complete |
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| Header | DbId: ehh DbLabel: Education Research Complete An: 182471178 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Maximizing Shareholder Welfare: A Normative Examination of Hart and Zingales' Corporate Governance Account: Maximizing Shareholder Welfare: A Normative Examination: S. Mejia and P. Bonaldi. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Mejia%2C+Santiago%22">Mejia, Santiago</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> smejia13@fordham.edu</i><br /><searchLink fieldCode="AR" term="%22Bonaldi%2C+Pietro%22">Bonaldi, Pietro</searchLink><relatesTo>2</relatesTo> (AUTHOR)<i> pbonaldi@andrew.cmu.edu</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Journal+of+Business+Ethics%22">Journal of Business Ethics</searchLink>. Jan2025, Vol. 196 Issue 2, p309-323. 15p. – Name: Subject Label: Subject Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Shareholder+primacy%22">Shareholder primacy</searchLink><br /><searchLink fieldCode="DE" term="%22Stockholder+wealth%22">Stockholder wealth</searchLink><br /><searchLink fieldCode="DE" term="%22Ethics%22">Ethics</searchLink><br /><searchLink fieldCode="DE" term="%22Corporate+governance%22">Corporate governance</searchLink> – Name: SubjectPerson Label: People Group: Su Data: <searchLink fieldCode="PE" term="%22Friedman%2C+Milton%2C+1912-2006%22">Friedman, Milton, 1912-2006</searchLink><br /><searchLink fieldCode="PE" term="%22Hart%2C+Oliver%2C+1948-%22">Hart, Oliver, 1948-</searchLink><br /><searchLink fieldCode="PE" term="%22Zingales%2C+Luigi%22">Zingales, Luigi</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: In response to the growing criticisms to shareholder primacy, Oliver Hart, a Nobel Economics Prize recipient, and Luigi Zingales, a very well-known finance professor, have offered a revision to Milton Friedman's dominant account. Seeking to incorporate social and moral concerns into the objective function of the firm, they have proposed that managers should maximize shareholder welfare instead of shareholder value. Their account has been highly influential and reflects many of the substantive and methodological assumptions of corporate governance scholars within the law and economics literature. In this paper, we engage closely with their account from a normative perspective, unearthing and criticizing the implications of many of these assumptions. In doing so, we also formulate a set of principles necessary to ensure the ethical legitimacy of any proposal that puts shareholders at the center of the firm's objective function. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=ehh&AN=182471178 |
| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1007/s10551-023-05551-5 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 15 StartPage: 309 Subjects: – SubjectFull: Shareholder primacy Type: general – SubjectFull: Stockholder wealth Type: general – SubjectFull: Ethics Type: general – SubjectFull: Corporate governance Type: general – SubjectFull: Friedman, Milton, 1912-2006 Type: general – SubjectFull: Hart, Oliver, 1948- Type: general – SubjectFull: Zingales, Luigi Type: general Titles: – TitleFull: Maximizing Shareholder Welfare: A Normative Examination of Hart and Zingales' Corporate Governance Account: Maximizing Shareholder Welfare: A Normative Examination: S. Mejia and P. Bonaldi. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Mejia, Santiago – PersonEntity: Name: NameFull: Bonaldi, Pietro IsPartOfRelationships: – BibEntity: Dates: – D: 11 M: 01 Text: Jan2025 Type: published Y: 2025 Identifiers: – Type: issn-print Value: 01674544 Numbering: – Type: volume Value: 196 – Type: issue Value: 2 Titles: – TitleFull: Journal of Business Ethics Type: main |
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