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Shareholder Value: Principles, Declarations, and Actions

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  • Claudio Loderer
  • Lukas Roth
  • Urs Waelchli
  • Petra Joerg

Abstract

This paper is about shareholder value. We examine whether welfare considerations justify that target and whether competitive markets force firms to pursue it. We also argue that shareholder value is strictly an ill‐defined goal. We report evidence from a large sample of listed firms across the world that many managers do not even mention shareholders in their mission statements. However, firms that do disclose a commitment to shareholders seem to perform better in terms of stock price and operating performance.

Suggested Citation

  • Claudio Loderer & Lukas Roth & Urs Waelchli & Petra Joerg, 2010. "Shareholder Value: Principles, Declarations, and Actions," Financial Management, Financial Management Association International, vol. 39(1), pages 5-32, March.
    • Handle: RePEc:bla:finmgt:v:39:y:2010:i:1:p:5-32
    DOI: 10.1111/j.1755-053X.2009.01064.x
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