RT Journal Article
SR Electronic
T1 Are We Really Maximizing Shareholder Wealth? Or
JF The Journal of Investing
FD Institutional Investor Journals
SP 55
OP 63
DO 10.3905/joi.2000.319373
VO 9
IS 3
A1 David J. Collison
A1 George M. Frankfurter
YR 2000
UL https://pm-research.com/content/9/3/55.abstract
AB This article deals with the overriding objective of maximizing shareholder wealth. We show that the maxim evolved from a false interpretation of Adam Smith's ideas and philosophy, and that it masquerades as a well-defined and unambiguously measurable concept. We also argue that, even if it were a well-defined concept, it still should not be an overriding goal of business activity, especially when its short-term long-term consequences are being explicitly studied.