shareholder primacy

The hedge funds saw themselves as the shock troops of shareholder primacy.

Over time, through both law and custom, the concept of "shareholder primacy" has come to be widely accepted.

It is often cited as affirming the principle of "shareholder primacy" in corporate America.

The doctrine of shareholder primacy is particularly dangerous when combined with dispersed ownership, he believes.

If shareholder primacy is not recognized, might they buy real estate, sovereign bonds or gold ingots instead?

Team Production Theory and other Challenges to "Shareholder Primacy"

Shareholder primacy is a theory in corporate governance holding that shareholder interests should be assigned first priority relative to all other corporate stakeholders.

Needless to say, in the era of shareholder primacy, with capital the most mobile of inputs to a project, new plants are being located where returns on investment are highest.

The doctrine of shareholder primacy is sometimes criticized for being at odds with corporate social responsibility and other legal obligations because it focuses solely on maximizing shareholder profits .

This idea that shareholders are the sole residual claimants was later challenged by legal scholars and some (e.g., Stout 2002) actively reject it in favor of other arguments for shareholder primacy.

Stout has also published numerous other articles on the empirical and theoretical weakness in the "shareholder primacy" view that corporations should be run to maximize shareholder wealth as measured by share price.

For the commission, CSR refers to obligations that go beyond the shareholder primacy concept to include human rights and environmental concerns as well as the interests of employees, suppliers, customers and communities.

For the anti-stakeholder lobby this will sit oddly with the Anglo-Saxon view of shareholder primacy, not least because Michel Barnier, European commissioner for the internal market, has tentatively raised the issue of stakeholder rights in relation to banks.

A shareholder primacy approach often gives shareholders power to intercede directly and frequently in corporate decision-making, through such means as unilateral shareholder power to amend corporate charters, shareholder referenda on business decisions and regular corporate board election contests.

An uncorporation may be formed in an effort to align managers' and owners' interests more closely than in a typical corporation, or may donate most of its profits to charity, or may pursue social responsibility goals that conflict with traditional corporate shareholder primacy.

The shareholder primacy norm was first used by courts to resolve disputes among majority and minority shareholders, and, over time, this use of the shareholder primacy norm evolved into the modern doctrine of minority shareholder oppression.