The Corporate Objective

The Corporate Objective addresses a question that has been subject to much debate: what should be the objective of public corporations? It examines the two dominant theories that address this issue, the shareholder primacy and stakeholder theories, and finds that both have serious shortcomings.

he book goes on to develop a new theory, called the Entity Maximisation and Sustainability Model. Under this model, directors are to endeavor to increase the overall long-run market value of the corporation as an entity. At the same time as maximizing wealth, directors have to ensure that the corporation survives and is able to stay afloat and pursue the development of the corporation's position. Andrew Keay seeks to explain and justify the model and discusses how the model is enforced, how investors fit into the model, how directors are to act and how profits are to be allocated.



Analyzing in depth the existing theories which seek to explain the corporate objective, this book will appeal to academics in corporate law and corporate governance as well as law, finance, business ethics, organizational behavior, management, economics, accounting and sociology. Postgraduate students in corporate law and corporate governance, directors, and government regulators will also find much to interest them in this study.



Contents:

Preface

1. Public Companies: Context, Theory and Objectives

2. Shareholder Primacy

3. Stakeholder Theory

4. An Entity Maximisation and Sustainability Model

5. The Enforcement of the Entity Maximisation and Sustainability Model

6. Investors

7. Managerial Discretion and Accountability

8. Allocation of Profits

9. Epilogue