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Cited by 389

The DOI matches its Crossref record; 44 of the 44 references it cites were found in a registry or an index.

Companies Should Maximize Shareholder Welfare Not Market Value

Open access
Hart, Oliver, Zingales, Luigi·2017·SSRN Electronic Journal
DOI 10.2139/ssrn.3004794
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Abstract

What is the appropriate objective function for a firm? We analyze this question for the case where shareholders are prosocial and externalities are not perfectly separable from production decisions. We argue that maximization of shareholder welfare is not the same as maximization of market value. We propose that company and asset managers should pursue policies consistent with the preferences of their investors. Voting by shareholders on corporate policy is one way to achieve this.

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Metadata

Authors
Hart, O., & Zingales, L.
Venue
SSRN Electronic Journal
Publisher
Elsevier BV
Published
2017
ISSN
1556-5068 (ISSN-L)
DOI
10.2139/ssrn.3004794
OpenAlex
W2740234889
Cited by
389
References
44
Type
posted content
Language
en
Open access
green

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CoChat. (2026). Citation check: Companies Should Maximize Shareholder Welfare Not Market Value. https://app.cochat.ai/papers/10.2139/ssrn.3004794
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Hart, O., & Zingales, L. (2017). Companies Should Maximize Shareholder Welfare Not Market Value. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3004794

Data sources

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.