Maximizing Shareholder-Value : A Panacea for Economic Growth or a Recipe for Economic and Social Disintegration?

Purpose - To examine the claim that the pursuit of maximum value (wealth) for shareholders optimizes economic and social benefits for society as a whole.Design/methodology/approach - Evidence cited in support of the claim and the methodology employed by its supporters are examined. Counter-evidence from a wide range of disciplines, including accounting, economics, finance, and medical sociology, is considered.Findings - The evidence does not support the claim. Bias and severe methodological flaws in its supporters' research is revealed. Considerable evidence of adverse consequences is identified