Stakeholder capitalism, corporate governance and firm value

  • We consider the advantages and disadvantages of stakeholder-oriented firms that are concerned with employees and suppliers as well as shareholders compared to shareholder-oriented firms. Societies with stakeholder-oriented firms have higher prices, lower output, and can have greater firm value than shareholder-oriented societies. In some circumstances, firms may voluntarily choose to be stakeholder-oriented because this increases their value. Consumers that prefer to buy from stakeholder firms can also enforce a stakeholder society. With globalization entry by stakeholder firms is relatively more attractive than entry by shareholder firms for all societies. JEL Classification: D02, D21, G34, L13, L21

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Author:Franklin Allen, Elena CarlettiGND, Robert Marquez
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2007,26
Series (Serial Number):CFS working paper series (2007, 26)
Document Type:Working Paper
Year of Completion:2007
Year of first Publication:2007
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2007/11/02
Tag:bankruptcy; competition; firm objective; stakeholder governance
GND Keyword:Stakeholder; Kapitalismus; Corporate Governance; Firmenwert
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht