Shareholder Value: Principles, Declarations, and Actions |
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| Authors: | Claudio Loderer,Lukas Roth&dagger ,Urs Waelchli&Dagger , Petra Joerg§ |
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| Affiliation: | Claudio Loderer is a Professor of Finance at the Institut für Finanzmanagement, Universität Bern, Engehaldenstrasse 4, 3012 Bern, Switzerland.;Lukas Roth is an Assistant Professor of Finance at the University of Alberta, School of Business, Edmonton, Alberta, Canada, T6G 2R6.;Urs Waelchli is an Assistant Professor of Finance at the Institut für Finanzmanagement, Universität Bern, Engehaldenstrasse 4, 3012 Bern, Switzerland.;Petra Joerg is the Managing Director of the Rochester-Bern Executive MBA Program, Engehaldenstrasse 4, 3012 Bern, Switzerland. |
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| Abstract: | ![]()
This paper is about shareholder value. We examine whether welfare considerations justify that target and whether competitive markets force firms to pursue it. We also argue that shareholder value is strictly an ill-defined goal. We report evidence from a large sample of listed firms across the world that many managers do not even mention shareholders in their mission statements. However, firms that do disclose a commitment to shareholders seem to perform better in terms of stock price and operating performance. |
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