Longform Thoughts: Why Organizations Undermine Creativity & Potential
The Pathless Path with Paul Millerd
00:00
What Do Companies Have to Maximize Shareholder Value?
In the early 1900s, there was a debate in the legal world on the purpose of the firm. A paper published by William Meckling and Mike Jensen pushed the idea that maximizing shareholder value was actually the best way to improve things for all the stakeholders. The research showed that eight out of ten financial officers would be willing to sacrifice long-term value to avoid the headaches of missing short-term targets.
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