Shareholder value added - Hutchinson encyclopedia article about Shareholder value added Printer Friendly
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shareholder value
(redirected from Shareholder value added)

   Also found in: Acronyms, Wikipedia 0.06 sec.

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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