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Shareholder value maximisation, stock market and new technology: should the US corporate model be the universal standard Author info | Abstract | Publisher info | Download info | Related research | Statistics Ajit Singh
Jack Glen
Ann Zammitt
Rafael De Hoyos
Alaka Singh
Bruce Weisse
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In 1992 a blue-ribbon group of US economists led by Michael Porter concluded that the US stock market-based corporate model was misallocating resources and jeopardising US competitiveness. The faster growth of US economy since then and the supposed US lead in the spread of information technology has brought new legitimacy to the stock market and the corporate model, which is being hailed as the universal standard. Two main conclusions of the analysis presented here are: (a) there is no warrant for revising the blue-ribbon groupÕs conclusion; and (b) even US corporations let alone developing country ones would be better off not having stock market valuation as a corporate goal.
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Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number
wp315.
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Date of creation: Sep 2005Date of revision:
Handle: RePEc:cbr:cbrwps:wp315Note: PRO-2Contact details of provider: Web page: http://www.cbr.cam.ac.uk/
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Keywords: Shareholder wealth ; Information technology ; Stock-market efficiency ; Other versions of this item:
Find related papers by JEL classification: G1 - Financial Economics - - General Financial Markets G3 - Financial Economics - - Corporate Finance and Governance
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