What is the appropriate objective function for a firm? We analyze this question for the case where shareholders are prosocial and externalities are not perfectly separable from production decisions. We argue that maximization of shareholder welfare is not the same as maximization of market...

In competitive economies with private firm ownership, incomplete markets, and firm shareholders changing over time, several firm objectives have been proposed. Some are useful to understand efficiency of equilibria, and others are explicitly consistent with majority shareholder control or...

Im Rahmen des Shareholder-Value-Konzepts soll durch erfolgsabhängige Entlohnungsverträge sichergestellt werden, dass Führungskräfte ihre Handlungen und Entscheidungen trotz Informationsvorsprüngen und Interessendivergenzen am Ziel der Unternehmenswertsteigerung ausrichten. Als...