The Role of the Concept of Shareholder Value in the Context of Value Based Corporate Management

This document discusses the concept of shareholder value and its relationship to value-based corporate management. It begins with an agenda that lists these topics. It then defines shareholder value, explaining that it represents the expected future payments to shareholders from a company. Next, it describes value-based corporate management and the principal-agent theory, where managers' interests may not align with shareholders. It acknowledges criticisms of solely using shareholder value, as it focuses on short-term gains. However, it also argues shareholder value is a useful tool when used properly in the context of long-term strategies and a compatible organizational model. In the end, it maintains that shareholder value does not provide a complete picture of a company on its own