shareholder value
| Theory that companies should maximize shareholder value at all times and that this aim should be a company's raison d'être. This idea gained popularity because it articulates clearly the reasons for a company's existence and ties in with the popular concept of the stakeholder corporation, implying that shareholders constitute a part of the stakeholders in the company. Proponents argue that shareholder value encourages companies to take a long-term view in order to satisfy institutional shareholders. |
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