Beyond Shareholder Wealth Maximisation

Towards a More Suitable Corporate Objective for Chinese Companies

Nonfiction, Reference & Language, Law, Corporate, Business & Finance, Business Reference
Cover of the book Beyond Shareholder Wealth Maximisation by Min Yan, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Min Yan ISBN: 9781351973588
Publisher: Taylor and Francis Publication: September 8, 2017
Imprint: Routledge Language: English
Author: Min Yan
ISBN: 9781351973588
Publisher: Taylor and Francis
Publication: September 8, 2017
Imprint: Routledge
Language: English

The corporate objective, namely, in whose interests a company should be run, is the most important theoretical and practical issue confronting us today, as this core objective animates or should animate every decision a company makes. Despite decades of debate, however, there is no consensus regarding what the corporate objective is or ought to be, but clarity on this issue is necessary in order to explain and guide corporate behaviour, as different objectives could lead to different analyses and solutions to the same corporate governance problem. In addition to the study on the corporate objective in Anglo-American jurisdictions, the discussion of this topic in the context of China is also very important on the grounds that China has become the second largest economy in the world and is playing an increasingly significant role in global affairs. Though a socialist state, China has also been relying heavily on the corporate vehicle as the most important business organisational form to ensure its rapid economic development since its market reforms in 1978. Adolf Berle and Gardiner Means’s observation made over eight decades ago that large public companies dominate the world remains true today, not only in the West but also in China. The regulation and governance of such companies will have a material impact on the further development of the Chinese economy, which could in turn directly affect the world economy. Company law and corporate governance therefore receive much attention and have become a vital issue in China. Although the current focus is primarily on corporate performance, the fundamental question at the heart of corporate governance, namely the corporate objective, is still unresolved.

Contrary to the widely held belief that the corporate objective should be maximising shareholder wealth, this book seeks to demonstrate that the shareholder wealth maximisation approach is both descriptively inaccurate and normatively unsuitable. As an antithesis to it, stakeholder theory generally develops to be a more suitable substitute. Justifications and responses to its main criticisms are offered from descriptive, normative and instrumental aspects, whilst new techniques of balancing competing interests and more workable guidance for directors’ behaviour are brought forward as essential modifications. Along with the unique characteristics of socialist states, the stakeholder model is expected to find solid ground in China and guide the future development of corporate governance.

This book will be important and useful to researchers and students of corporate law, corporate governance, business and management studies.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

The corporate objective, namely, in whose interests a company should be run, is the most important theoretical and practical issue confronting us today, as this core objective animates or should animate every decision a company makes. Despite decades of debate, however, there is no consensus regarding what the corporate objective is or ought to be, but clarity on this issue is necessary in order to explain and guide corporate behaviour, as different objectives could lead to different analyses and solutions to the same corporate governance problem. In addition to the study on the corporate objective in Anglo-American jurisdictions, the discussion of this topic in the context of China is also very important on the grounds that China has become the second largest economy in the world and is playing an increasingly significant role in global affairs. Though a socialist state, China has also been relying heavily on the corporate vehicle as the most important business organisational form to ensure its rapid economic development since its market reforms in 1978. Adolf Berle and Gardiner Means’s observation made over eight decades ago that large public companies dominate the world remains true today, not only in the West but also in China. The regulation and governance of such companies will have a material impact on the further development of the Chinese economy, which could in turn directly affect the world economy. Company law and corporate governance therefore receive much attention and have become a vital issue in China. Although the current focus is primarily on corporate performance, the fundamental question at the heart of corporate governance, namely the corporate objective, is still unresolved.

Contrary to the widely held belief that the corporate objective should be maximising shareholder wealth, this book seeks to demonstrate that the shareholder wealth maximisation approach is both descriptively inaccurate and normatively unsuitable. As an antithesis to it, stakeholder theory generally develops to be a more suitable substitute. Justifications and responses to its main criticisms are offered from descriptive, normative and instrumental aspects, whilst new techniques of balancing competing interests and more workable guidance for directors’ behaviour are brought forward as essential modifications. Along with the unique characteristics of socialist states, the stakeholder model is expected to find solid ground in China and guide the future development of corporate governance.

This book will be important and useful to researchers and students of corporate law, corporate governance, business and management studies.

More books from Taylor and Francis

Cover of the book Dilemmas of Social Reform by Min Yan
Cover of the book Analysing Modern Business Cycles: Essays Honoring Geoffrey H.Moore by Min Yan
Cover of the book Europeanization and Domestic Policy Change by Min Yan
Cover of the book Imperial Eyes by Min Yan
Cover of the book Black American Cinema by Min Yan
Cover of the book Turning Pupils on to Learning by Min Yan
Cover of the book The Quiet Revolutionaries by Min Yan
Cover of the book Learning ICT with Science by Min Yan
Cover of the book Photoshop for Video by Min Yan
Cover of the book HR Leadership by Min Yan
Cover of the book Freedom Road by Min Yan
Cover of the book Identity, Self-Determination and Secession by Min Yan
Cover of the book Marketing Issues in Western Europe by Min Yan
Cover of the book Philosophy of Personal Identity and Multiple Personality by Min Yan
Cover of the book Town and Country Planning in the UK by Min Yan
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy