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7 May 2024, 6:32 am
For decades, advocates of “shareholder primacy” as the North Star of corporate governance have steered our leading corporations and our Nation’s economic engine perilously off-course. [read post]
7 May 2024, 6:32 am
For decades, advocates of “shareholder primacy” as the North Star of corporate governance have steered our leading corporations and our Nation’s economic engine perilously off-course. [read post]
11 Feb 2019, 12:12 pm
For the past 50 years, corporate law and policy has been misguided by Nobel Laureate Milton Friedman’s ex-cathedra doctrinal announcement that the sole purpose of business is to maximize profits for shareholders. [read post]
16 Aug 2012, 2:18 am by Erik Gerding
  It harkens back to Milton Friedman's arguments that corporations and the states do and should exist in separate spheres; if citizens want to change corporate policy, the argument goes, they should act through the political process and push through public regulation. [read post]
7 May 2024, 9:01 pm by renholding
 Since the 1970s, when the work of Milton Friedman, Michael Jensen, and Frank Easterbrook took hold in business schools, activists and raiders in high-profile proxy fights and hostile takeovers on Wall Street have wrapped their arms around the shareholder-primacy narrative to advance their own short-termist objectives. [read post]
16 Dec 2019, 3:30 am by Charlene D. Luke
As her Milton-evoking title suggests, Hurt describes an early, prelapsarian partnership state, dating to the creation of the income tax. [read post]
13 Feb 2023, 9:01 pm by renholding
An acolyte of Milton Friedman and other conservative scholars, Ramaswamy insists that the only purpose of business is money-making and that other corporate activity is conceptually ultra vires and wasteful. [read post]
11 Nov 2020, 7:00 am by Race to the Bottom
In 2014, Trevor Milton founded Nikola Corporation (“Nikola”), which manufacturers semi-trucks and pick-up trucks powered by hydrogen and electric batteries, in competition with Tesla’s electric Cybertruck. [read post]
11 Apr 2017, 3:01 pm
Or is the corporation merely property, a complex commodity? [read post]
18 Sep 2022, 6:31 am
This theory, which came to be known as shareholder primacy, is epitomized by Milton Friedman’s seminal 1970 essay, The Social Responsibility Of Business Is to Increase Its Profits, in which he argued that every corporation should seek solely to “increase its profits within the rules of the game. [read post]
In the recent annual meeting of the Western Economic Association International (WEAI), held in Seattle this past weekend, Professor Lucian Bebchuk delivered a presidential address entitled “The Rent-Protection Theory of Corporate Ownership and Control. [read post]
19 Apr 2023, 12:10 pm by Kevin LaCroix
  As academics began to think more broadly about the purpose of a corporation in the middle of the 20th century, the predominant view was that of Milton Friedman of the University of Chicago, who strongly espoused the view that the sole purpose of a corporation was to maximize its profits and its value. [read post]
14 Sep 2010, 8:00 am by Todd Henderson
When this kind of thing happens, when an admirer of Milton Friedman calls him wrong, this is surely a sign of a right answer. [read post]
10 Apr 2018, 2:40 pm
From early in the twentieth century it has been commonplace to understand that the corporation and its fiduciaries owe their highest duty of loyalty to equity holders, and that this duty requires the operation of the enterprise to maximize the value of their holdings.9 This principle of shareholder primacy continues to serve as the central principal of the legal management of corporate governance.10 From the 1960s, CSR acquired a political dimension as well.11 Milton… [read post]
19 Dec 2022, 3:29 am by Frank Cranmer
Profit maximisation theory – the idea that achievement of profits for shareholders ought to be the sole purpose of business – was vociferously defended by international economist Milton Friedman who, writing in 1970, resisted the trend at the time towards what is now known in the management and ethics field as “corporate social responsibility” (Friedman, 1970). [read post]
23 Jun 2017, 6:08 am
In 1970, Milton Friedman famously argued that the only social responsibility of business was to maximize profits. [read post]
16 Jul 2008, 4:27 am
We also contribute to the literature of corporate governance by measuring the change in the Company’s market value when the Trust exposed the Company to the market for corporate control. [read post]