The Pandemic and Shareholder Value
Keywords:Shareholder Value, Corporate Governance, Stakeholders, Stock Market, Pandemic, Global Markets
AbstractShareholder value has driven corporate governance in North America for over a century. In the wake of significant financial crises and growing inequalities, corporate America decided in 2019 to embrace a more egalitarian model, in which all stakeholders matter equally. The brutal pandemic that wreaked havoc in the first half of 2020 exposed a startling disconnect between the real economy and the stock market. This disconnect is due to a gap between explicit and implicit corporate governance. While officially corporate America wants to convert to a new doctrine, the pandemic has shown that shareholder capitalism has remained the default model. Good intentions and official declarations are not enough in a system that has been specifically designed to serve the shareholders. If stakeholder capitalism is to succeed, it needs a clear normative content and perhaps a more radical reform of institutions and regulation.
How to Cite
Copyright (c) 2021 Symphonya. Emerging Issues in Management
This work is licensed under a Creative Commons Attribution 4.0 International License.
The authors retain all rights to the original work without any restrictions.
License for Published Contents
You are free to copy, distribute and transmit the work, and to adapt the work. You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work).
License for Metadata
Symphonya published articles metadata are dedicated to the public domain by waiving all publisher's rights to the work worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
You can copy, modify, distribute and perform the work, even for commercial purposes, all without asking permission.