We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Assessing the Arguments Related to Shareholder Primacy and Stakeholder Theory in Corporate Governance - Dissertation Example

Comments (1) Cite this document
Summary
The purpose of this research is to analyze the merits of both sides of the debate and to determine if one theory of corporate governance is superior to the other. After a review of the literature and data, it is determined that both theories of corporate governance have their strengths and weaknesses and that a convergence of the two models will resolve the gaps…
Download paper
GRAB THE BEST PAPER
Assessing the Arguments Related to Shareholder Primacy and Stakeholder Theory in Corporate Governance
Read TextPreview

Extract of sample
Assessing the Arguments Related to Shareholder Primacy and Stakeholder Theory in Corporate Governance

Historically, the shareholder primacy theory has occupied a significant role in the corporate governance strategies based on the Anglo-American model. Shareholder primacy theory takes the position that the corporation is owned by shareholders and thus exists for the sole purpose of maximizing shareholder value. The role of shareholder primacy in corporate governance has been challenged by the European model of corporate governance which recognizes stakeholder value. Stakeholder theory looks more keenly at relationships between the corporation and its stakeholders, and presumes that profits flow naturally from improving stakeholder value and should not drive corporate decisions and behaviour. It therefore follows that theories of shareholder and stakeholder value espouse divergent presumptions on what factors should drive corporate behavior.
In light of the recent global financial crisis of 2008-2009, there has been considerable debate over whether or not shareholder primacy should play an even greater role in making management accountable. Even so, these arguments are countered by arguments that express concern over the possibility that shareholder primacy would have a negative impact on the corporation or organization’s wider class of stakeholders; employees, creditors, the community and consumers....
icism of Shareholder Primacy 24 2.3 Stakeholder Theory 28 2.3.1 Definition 28 2.3.2 Origins of Stakeholder Theory 30 2.3.3 Developments and Current Stakeholder Theory 32 2.3.4 Criticisms of Stakeholder Theory 34 2.4 Conclusion 36 2.5 Chapter Summary 37 Chapter Three 38 Shareholder Primacy in Corporate Governance 38 3.1 Introduction 38 3.2 Shareholder Primacy in Practice 38 3.3 Shareholder Primacy and Corporate Governance in the UK 42 3.4 Conclusion 46 3.5 Chapter Summary 47 Chapter Four 47 Stakeholder Theory and Corporate Governance 47 4.1 Introduction 48 4.2 Definition of Corporate Social Responsibility 48 4.3 Stakeholder Theory and Corporate Social Responsibility in Practice 49 4.4 Conclusion 54 4.5 Chapter Summary 54 Chapter Five 55 Findings/Conclusion 55 Bibliography 58 Chapter One Shareholder Primacy and Stakeholder Theory: Issues and Background 1.1 Introduction Historically, the shareholder primacy theory has occupied a significant role in the corporate governance strategies based on the Anglo-American model.4 Shareholder primacy theory takes the position that the corporation is owned by shareholders and thus exists for the sole purpose of maximizing shareholder value.5 The role of shareholder primacy in corporate governance has been challenged by the European model of corporate governance which recognizes stakeholder value. Stakeholder theory looks more keenly at relationships between the corporation and its stakeholders, and presumes that profits flow naturally from improving stakeholder value and should not drive corporate decisions and behaviour.6 It therefore follows that theories of shareholder and stakeholder value espouse divergent presumptions on what factors should drive corporate behavior. In light of the recent global financial crisis of 2008-2009, ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Assessing the Arguments Related to Shareholder Primacy and Stakeholder Dissertation”, n.d.)
Retrieved from https://studentshare.net/law/1113-assessing-the-arguments-related-to-shareholder-primacy-and-stakeholder-theory-in-corporate-governance
(Assessing the Arguments Related to Shareholder Primacy and Stakeholder Dissertation)
https://studentshare.net/law/1113-assessing-the-arguments-related-to-shareholder-primacy-and-stakeholder-theory-in-corporate-governance.
“Assessing the Arguments Related to Shareholder Primacy and Stakeholder Dissertation”, n.d. https://studentshare.net/law/1113-assessing-the-arguments-related-to-shareholder-primacy-and-stakeholder-theory-in-corporate-governance.
  • Cited: 0 times
Comments (1)
Click to create a comment
ch
chaag added comment 1 month ago
Student rated this paper as
This dissertation was always my weak point. I could never complete it successfully. Still, after I found this precise essay, I understood how it should be completed. So, I performed my research afterward and completed the dissertation in several hours, instead of days as it was previously.
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Corporate Governance in The Kingdom of Saudi Arabia
The current research found that the stringent control posed by corporate governance significantly predicts the successful influence of corporate governance on the auditing role. While it predicts success, the same independent variable has been disagreed upon by the respondents. This suggests that at present, it is still in need of improvement.
66 Pages(16500 words)Dissertation
Corporate Governance in Russia
Data were gathered online either from the database called Osiris or by from company annual reports posted in their website. Pertinent information were initially gathered from 2005 to 2011, but data for the year 2009 was chosen for analysis.
21 Pages(5250 words)Dissertation
Literature Review of Corporate Governance and Dividend Policy
There is growing concern about the excessive managerial remuneration which was highlighted because of recent financial recession. There is much anxiety about making the remuneration packages highly controlled and avoid unnecessary risk or encourage corporate insatiability.
11 Pages(2750 words)Dissertation
Assessing the potential impact of institutional investors on corporate governance in China
p.4 Overview ..................................................................... p.5 Background ..................................................................... p.6 Research Description ......................................................... p.9 Methodology .
32 Pages(8000 words)Dissertation
Discussion of the various issues related to corporate governance and its impact on financial performance of companies
For the purpose of this study four of U.K’s top P.L.Cs from three different sectors are used and analyzed. This includes two major UK banks namely HSBC and RBS (banking sector); British Petroleum P.L.C. (Oil & Gas sector); and J. Sainsbury (Retail sector).
54 Pages(13500 words)Dissertation
Corporate governance
sources 35 4.6.1 Secondary data sources 35 4.6.2 Primary data sources 35 Reference 39 Chapter 2: Literature review 2.2 Theoretical review The term “Corporate Governance” has emerged as one of the pertinent debate topic for both business managers and academic scholars.
40 Pages(10000 words)Dissertation
Corporate Governance- Proposal
4.2.Discussion and Findings 18 5.Chapter 5 19 5.1.Conclusion 19 5.2.Recommendation 19 Reference 21 1. Chapter 1 1.1. Introduction The importance of corporate governance for the financial reporting can be explained by describing the relationship between business and society.
16 Pages(4000 words)Dissertation
Corporate Governance Implications of Financial Fraud
The author states that financial statement fraud and Ponzi schemes involving Board Chairpersons and senior figures in public companies wasted billions of dollars of investor capital to threaten markets and public interest. Only independent boards are capable of exercising.
36 Pages(9000 words)Dissertation
UK Regulatory Framework for Corporate Governance
The essence of corporate governance lies in the separation of ownership and control. The shareholders of a firm bestow the responsibilities to control and administer the firm on the board of directors. The managers while running the company have the informational advantage, which the shareholders do not have.
8 Pages(2000 words)Dissertation
Corporate governance in the GCC
The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs.
12 Pages(3000 words)Dissertation
Let us find you another Dissertation on topic Assessing the Arguments Related to Shareholder Primacy and Stakeholder Theory in Corporate Governance for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us