Shareholder Value Maximization: What Managers Say and What They Do

Loderer, Claudio; Joerg, Petra; Roth, Lukas (2004). Shareholder Value Maximization: What Managers Say and What They Do. Die Betriebswirtschaft : DBW, 3(04), pp. 357-378. Schäffer-Poeschel

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This paper examines whether Swiss firms maximize shareholder value. To find out, we survey the goals of 313 listed and unlisted firms. We then examine whether managers’ decisions are consistent with their goals and analyze whether performance corresponds to intentions. Our results show that most managers pursue conflicting targets. Many also declare that they do not maximize shareholder value. And those who claim they do sometimes rely on investment criteria that are inconsistent with that target. Finally, we find that share-price performance is marginally better when managers claim to maximize shareholder value, particularly when stock prices have fallen.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management

UniBE Contributor:

Loderer, Claudio; Joerg, Petra and Roth, Lukas

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0342-7064

Publisher:

Schäffer-Poeschel

Language:

English

Submitter:

Karin Dolder

Date Deposited:

09 Dec 2013 16:51

Last Modified:

09 Jul 2018 12:33

BORIS DOI:

10.7892/boris.39509

URI:

https://boris.unibe.ch/id/eprint/39509

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