Search results
Results from the WOW.Com Content Network
The Friedman doctrine was amplified after the publication of an influential 1976 business paper by finance professors William Meckling and Michael C. Jensen, "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure", which provided a quantitative economic rationale for maximizing shareholder value. [7]
The term shareholder value, sometimes abbreviated to SV, [1] can be used to refer to: . The market capitalization of a company;; The concept that the primary goal for a company is to increase the wealth of its shareholders (owners) by paying dividends and/or causing the stock price to increase (i.e. the Friedman doctrine introduced in 1970);
(Bloomberg Opinion) -- My Bloomberg Opinion colleague Joe Nocera is a onetime believer in Milton Friedman’s doctrine who has changed his mind. He explains why here.Fifty years ago this month ...
In his 1962 book, Capitalism and Freedom, the economist Milton Friedman advanced the theory of shareholder primacy which says that "corporations have no higher purpose than maximizing profits for their shareholders." Friedman said that if corporations were to accept anything but making money for their stockholders as their primary purpose, it ...
In 1970, famed economist Milton Friedman wrote that "there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so ...
"The social responsibility of the firm is to increase profits," Milton Friedman argued in his famous 1970 essay, a canonical account of shareholder primacy. This view is usually contrasted with ...
In this article, Friedman posited that the objective of firm managers should be to maximize shareholder value, but did not address whether managers had the right incentives to do so. Jensen and Meckling would spend the next year refining the paper as they found holes in the view of a firm as a profit-maximizing entity.
For premium support please call: 800-290-4726 more ways to reach us