Alternate Approaches
A standard assumption in Corporate finance is that shareholders are the residual claimants and that the primary goal of executives should be to maximize shareholder value. Recently, however, legal scholars (e.g. Lynn Stout ) have questioned this assumption, implying that the assumed goal of maximizing shareholder value is inappropriate for a public corporation. This criticism in turn brings into question the advice of corporate finance, particularly related to stock buybacks made purportedly to "return value to shareholders," which is predicated on a legally erroneous assumption.
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Famous quotes containing the words alternate and/or approaches:
“Germany is a queer country: one can’t regard it dispassionately. I alternate between hating it thoroughly, stick, stock and stone, and yearning over it fit to break my heart. I can’t help feeling it a young and adorable country—adolescent—with the faults of adolescence.”
—D.H. (David Herbert)
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—Henry David Thoreau (1817–1862)