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You seem to misunderstand the point of maximizing shareholder value. If the managers of a company behave in a way that troubles the shareholders, a lawsuit is a
by JackFr 5y ago
You seem to misunderstand the point of maximizing shareholder value. If the managers of a company behave in a way that troubles the shareholders, a lawsuit is a very inefficient way to go. You simply take your capital elsewhere.
- jgeada 5y agoWhat capital is that shareholder taking elsewhere? Once a company has sold a share, it no longer has much direct interest in the value of that share on further transactions (much like a publisher only gets value from the first sale of a book, all other sales of that same book produce no value to the publisher). Sure, further share sales may become more difficult, but that is a distinct effect.
- IfOnlyYouKnew 5y agoSure….. I’m referring to an argument of the form “that’s not evil, it’s what they are legally required to do’ Examples; https://news.ycombinator.com/item?id=27564034 https://news.ycombinator.com/item?id=27564034 (the platonic ideal of this fallacy) https://news.ycombinator.com/item?id=27702670 https://news.ycombinator.com/item?id=27702670 https://news.ycombinator.com/item?id=2731253 https://news.ycombinator.com/item?id=2731253 https://news.ycombinator.com/item?id=6653519 https://news.ycombinator.com/item?id=6653519 https://news.ycombinator.com/item?id=3698084 https://news.ycombinator.com/item?id=3698084