Topic
Shareholder Value
51 published works
The CLS Blue Sky Blog
The Twitter Board Bears Personal Responsibility for a Bad Outcome in the Twitter Sale
Let’s be clear about this: The Twitter board was under no legal compulsion to accept Elon Musk’s offer for the company and, from a corporate governance structural point of view,…
The CLS Blue Sky Blog
The History and Revival of the Corporate Purpose Clause
The corporate purpose debate is experiencing a renaissance. The contours of the modern debate are relatively well developed and typically focus on whether corporations should pursue shareholder value maximization or…
California Corporate & Securities Law Blog
Harvard Law Professor Warns Nasdaq's Proposed Board Diversity Rule Would Harm Investors
Jesse Fried is the Dane Professor of Law at the Harvard Law School. He and Lucian Bebchuk wrote the book, Pay without Performance: the Unfulfilled Promise of Executive Compensation, a critical assessment…
The CLS Blue Sky Blog
ESG Incidents and Shareholder Value
Corporations increasingly integrate environmental, social, and governance (ESG) issues into their business practices and signal this by committing to sustainability initiatives, such as the UN Global Compact or the 2019…
Cleary M&A and Corporate Governance Watch
Corporate Sustainability: Moving Faster and Faster to the Center of Strategy and Shareholder Value
By David Lopez, Calvin Ketchum
Corporate sustainability has in a few short years become a mainstream capital allocation and voting criterion for many institutional investors. As a consequence, those investors are calling for consistent, comparable…
The CLS Blue Sky Blog
Is Stakeholderism Bad for Stakeholders?
A series of recent papers (here, here, and here, for example) have argued that maximizing shareholder value remains the proper goal of the modern corporation – and in some cases…
The CLS Blue Sky Blog
Should the Modern Corporation Maximize Shareholder Value?
By Sanjai Bhagat, R. Glenn Hubbard
Fifty years ago this year, Milton Friedman, later to be a Nobel laureate in economics, famously argued that corporate governance should focus solely on shareholder value maximization, while conforming to…
The CLS Blue Sky Blog
Why Proxy Advice Might Be Slanted
By John G. Matsusaka, Chong Shu
In the last two decades, the proxy advice market has consolidated into two companies that some believe control as much as 97 percent of that market, leaving little diversity in…
The CLS Blue Sky Blog
Do Security Breaches Matter? The Shareholder Perspective
By Allen Michel Jacob Oded, Israel Shaked
In a forthcoming paper, we explore the stock prices of companies during the period just before to just after an announcement that they have been hit with a computer breach. …
The CLS Blue Sky Blog
On an Expansive Definition of Shareholder Value in the Boardroom
Directors of a Delaware corporation must act in the best interest of the corporation and its shareholders.[1] Other stakeholders – such as employees, creditors, customers, and suppliers – may only…