This paper studies managerial reaction to shareholder empowerment that strengthens shareholder voting, a form of direct democracy. We explore this...Read more
In the absence of agency conflict and market frictions, it is beneficial to allow greater freedom to firms in their choice of corporate financial...Read more
Stock market investors are becoming increasingly vocal about the diversity of corporate leadership teams, following a global trend to engage with...Read more
What is the appropriate objective function for a firm? We analyze this question for the case where shareholders are prosocial and externalities...Read more
Nobel Laureate, Prof. Oliver Hart (Andrew E. Furer Professor of Economics, Harvard University) presents his paper on “The Responsibility of Business is to Pursue Shareholder Value: True or False?” at the 2016 GCGC Conference in Stockholm. Discussion of the paper is then presented by Prof. Michael Klausner (Nancy and Charles Munger Professor of Business and Professor of Law, Stanford Law School).