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The Coming Transformation of Shareholder Value

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  • Simon Deakin

Abstract

This essay challenges the primacy of shareholder value. Shareholder primacy originates not in company law, but rather in the norms and practices surrounding the rise of the hostile takeover movement in Britain and America in the 1970s and 1980s. It is less strongly institutionalised than might be supposed, because it is essentially a cultural rather than a legal point of reference. Moreover, in the course of the past decade, a shift in the content of shareholder value has occurred which reflects the stakeholder critique of that period: this reflects the idea that shareholders should exercise their power not as representatives of the market, but as agents of society as a whole. The corporate governance of the future will be centrally concerned with how this idea is worked out in practice.

Suggested Citation

  • Simon Deakin, 2005. "The Coming Transformation of Shareholder Value," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(1), pages 11-18, January.
    • Handle: RePEc:bla:corgov:v:13:y:2005:i:1:p:11-18
    DOI: 10.1111/j.1467-8683.2005.00399.x
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    References listed on IDEAS

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    1. Ajit Singh & Bruce Weisse & Alaka Singh, 2002. "Corporate governance, competition, the new international financial architecture and large corporations in emerging markets," Working Papers wp250, Centre for Business Research, University of Cambridge.
    2. A Cosh & P Guest, 2001. "The Long-Run Performance of Hostile Takeovers: UK Evidence," Working Papers wp215, Centre for Business Research, University of Cambridge.
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    Cited by:

    1. Peter Waring & Tony Edwards, 2008. "Socially Responsible Investment: Explaining its Uneven Development and Human Resource Management Consequences," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(3), pages 135-145, May.
    2. Abrahim Soleimani & William D. Schneper & William Newburry, 2014. "The Impact of Stakeholder Power on Corporate Reputation: A Cross-Country Corporate Governance Perspective," Organization Science, INFORMS, vol. 25(4), pages 991-1008, August.
    3. Lippert, Inge, 2008. "Perspektivenverschiebungen in der Corporate Governance: Neuere Ansätze und Studien der Corporate-Governance-Forschung," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-302, WZB Berlin Social Science Center.
    4. Kostiantyn Ovsiannikov, 2018. "Impact of Shareholder-Value Pursuit on Labor Policies at Japanese Joint-Stock Companies: Case of Nikkei Index 400," Working Papers hal-01839679, HAL.
    5. Stephen P. Ferris & Nilanjan Sen & Emre Unlu, 2009. "An International Analysis of Dividend Payment Behavior," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(3-4), pages 496-522.
    6. Thams, Yannick & Kelley, Keith & Von Glinow, Mary Ann, 2018. "Foreigners in the boardroom: The implications of attitudes toward immigration and conservatism in firms' sub-national context," Journal of Business Research, Elsevier, vol. 91(C), pages 8-18.
    7. Charles T. Crespy & Van V. Miller, 2011. "Sustainability reporting: A comparative study of NGOs and MNCs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(5), pages 275-284, September.
    8. Simon Deakin & Richard Hobbs & Sue Konzelmann & Frank Wilkinson, 2005. "Anglo-American corporate governance and the employment relationship: a case to answer?," Working Papers wp308, Centre for Business Research, University of Cambridge.
    9. John Quinn, 2019. "The Sustainable Corporate Objective: Rethinking Directors’ Duties," Sustainability, MDPI, vol. 11(23), pages 1-12, November.
    10. Carol A. Adams & Glen Whelan, 2009. "Conceptualising future change in corporate sustainability reporting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(1), pages 118-143, January.

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