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Essay Details:
Essay text:
Yet there has been no more research has been done after the debate to solve the argument.
Therefore from this I can interpret that the argument is whether the interest in the business lies in the interest of the shareholders or stakeholders.
So then the author Lynn A. Stout goes on to list the arguments for and against these theories –
1. The Shareholder Ownership Argument for Shareholder Primacy.
In this argument the Author considers the most common argument which is that the Business “belongs” to its shareholders in that its main purpose to increase shareholder wealth. While shareholders do not own all of the business the do own a stake in it so for this their rights as “the owners” are quite limited this is where the Agency theory takes effect while shareholders are seen as the owners they do not manage the day to day running of the business that managers do...
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Common topics in this essay:
- Creating Shareholder Value
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