3 ms·
The difference is that shareholders lose something (the value of their shares) when they drain a company of its assets. This might still be short-sighted, but t
by rocqua 9y ago
The difference is that shareholders lose something (the value of their shares) when they drain a company of its assets. This might still be short-sighted, but there is at least a balancing force.
In public services, where making a loss is o.k. this is just included in the loss, and there is essentially nothing that encourages the 'parasite' to not drain the system.
- FranzFerdiNaN 9y agoWell, even that no longer seems to be assured. Plenty of ways to strip a company and make a profit in the short term, destroying the company in the long term.
- ModernMech 9y agoE.g. Toys R Us. It was bought then saddled with debt by the new investors, and is now dead.
- Slansitartop 9y ago> The difference is that shareholders lose something (the value of their shares) when they drain a company of its assets. Not if they sell before the shit hits the fan.