In search of an alternative to shareholder value maximization
AbstractThis paper argues that mainstream economic the- ory, far from providing an indisputable plea in favor of shareholder value-maximization, o ers striking arguments showing quite the opposite: pro t maximization cannot be a legitimate prioritar- ian goal for private rms. This opens the door for a widening of a company's goal. We argue that it should include the con- cern of all the stakeholders of a company, and cannot be ade-quately addressed uniquely by Pigouvian taxes or by property rights. Coming to terms with this broad understanding of a com-pany's goal should imply the internalization of the stakeholders' concern within the legal structure of the rm | as in the case of the scic in France or the cic in the UK.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00609153.
Date of creation: 08 Jul 2011
Date of revision:
Note: View the original document on HAL open archive server: http://hal-essec.archives-ouvertes.fr/hal-00609153/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Corporate social responsibility ; shareholder value ; stakeholder value ; incomplete markets; limited liability ; property rights ; collateral ; cooperative;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-27 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruni, Luigino & Sugden, Robert, 2008. "Fraternity: Why The Market Need Not Be A Morally Free Zone," Economics and Philosophy, Cambridge University Press, vol. 24(01), pages 35-64, March.
- Grossman, Sanford J & Hart, Oliver D, 1979.
"A Theory of Competitive Equilibrium in Stock Market Economies,"
Econometric Society, vol. 47(2), pages 293-329, March.
- Sanford Grossman & Oliver Hart, 1978. "A theory of competitive equilibrium in stock market economies," Special Studies Papers 115, Board of Governors of the Federal Reserve System (U.S.).
- Boyd, John III & Conley, John P., 1997. "Fundamental Nonconvexities in Arrovian Markets and a Coasian Solution to the Problem of Externalities," Journal of Economic Theory, Elsevier, vol. 72(2), pages 388-407, February.
- Balasko, Yves & Cass, David, 1989. "The Structure of Financial Equilibrium with Exogenous Yields: The Case of Incomplete Markets," Econometrica, Econometric Society, vol. 57(1), pages 135-62, January.
- Cornet, Bernard, 1988. "General equilibrium theory and increasing returns : Presentation," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 103-118, April.
- GIRAUD, Gaël, 2000.
"An algebraic index theorem for non-smooth economies,"
CORE Discussion Papers
2000016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gaël Giraud, 2001. "An Algebraic Index Theorem for Non-smooth Economies," Post-Print hal-00460314, HAL.
- Starrett, David A., 1972. "Fundamental nonconvexities in the theory of externalities," Journal of Economic Theory, Elsevier, vol. 4(2), pages 180-199, April.
- Britz, Volker & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2010.
"Non-cooperative support for the asymmetric Nash bargaining solution,"
Journal of Economic Theory,
Elsevier, vol. 145(5), pages 1951-1967, September.
- Britz, Volker & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2008. "Non-cooperative Support for the Asymmetric Nash Bargaining solution," Research Memorandum 018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Atsushi Kajii & Antonio Villanacci & Alessandro Citanna, 1998. "Constrained suboptimality in incomplete markets: a general approach and two applications," Economic Theory, Springer, vol. 11(3), pages 495-521.
- Thomas, Charles P, 1995. "The Role of Fiscal Policy in an Incomplete Markets Framework," Review of Economic Studies, Wiley Blackwell, vol. 62(3), pages 449-68, July.
- Bonnisseau, J.-M. & Cornet, B., 1987. "Existence of marginal cost pricing equilibrium in an economy with several nonconvex firms," CORE Discussion Papers 1987023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Geanakoplos, John & Polemarchakis, H.M., 2008. "Pareto improving taxes," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 682-696, July.
- John Geanakoplos & Andreu Mas-Colell, 1985.
"Real Indeterminacy with Financial Assets,"
Cowles Foundation Discussion Papers
770R, Cowles Foundation for Research in Economics, Yale University, revised Oct 1985.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- John Geanakoplos & H M Polemchakis, 2008. "Pareto Improving Taxes," Levine's Working Paper Archive 122247000000002219, David K. Levine.
- Momi, Takeshi, 2001. "Non-existence of equilibrium in an incomplete stock market economy," Journal of Mathematical Economics, Elsevier, vol. 35(1), pages 41-70, February.
- Salchow, Hans-Jurgen, 2006. "An essay on the state of economic science," Journal of Mathematical Economics, Elsevier, vol. 42(6), pages 653-660, September.
- John Geanakoplos & Michael Magill & Martine Quinzii & J. Dreze, 1988.
"Generic Inefficiency of Stock Market Equilibrium When Markets Are Incomplete,"
Cowles Foundation Discussion Papers
863, Cowles Foundation for Research in Economics, Yale University.
- Geanakoplos, J. & Magill, M. & Quinzii, M. & Dreze, J., 1990. "Generic inefficiency of stock market equilibrium when markets are incomplete," Journal of Mathematical Economics, Elsevier, vol. 19(1-2), pages 113-151.
- Geanakoplos, J. & Magill, M. & Quinzii, M. & Dreze, J., . "Generic inefficiency of stock market equilibrium when markets are incomplete," CORE Discussion Papers RP -916, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Dierker, Egbert, 1987. "Increasing returns, efficiency, and the distribution of wealth," European Economic Review, Elsevier, vol. 31(1-2), pages 475-482.
- John Geanakoplos & H. M. Polemarchakis, 2008. "Pareto Improving Taxes," Cowles Foundation Discussion Papers 1662, Cowles Foundation for Research in Economics, Yale University.
- Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-22, June.
- Guesnerie, Roger, 1975. "Pareto Optimality in Non-Convex Economies," Econometrica, Econometric Society, vol. 43(1), pages 1-29, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.