'This book is an excellently constructed piece of legal writing which covers a topic of significant social and economic importance. It is a work of excellent analytical clarity and contains a vast amount of research and considerable detail. . . Academics in corporate law and corporate governance in addition to corporate social responsibility and company law generally will find much to interest them in this publication as will students who study in these areas, particularly postgraduates.'
- John Quiggin, Journal of Business Law
'This is legal scholarship of the finest kind, concerned with an issue of supreme political, economic and social importance. Professor Keay takes the debate on the object of the modern public corporation by the scruff of its neck and skilfully navigates between the Scylla and Charybdis of the shareholder/stakeholder debate. This book, characterised by admirable analytical clarity and a huge amount of research, faithfully summarises the debate hitherto, and propels us to the next stage with a powerful argument, which challenges, effectively, both the stakeholder and shareholder theories.'
-Harry Rajak, University of Sussex School of Law, UK
The Corporate Objective addresses a question that has been subject to much debate: what should be the objective of public corporations? It examines the two dominant theories that address this issue, the shareholder primacy and stakeholder theories, and finds that both have serious shortcomings.
The book goes on to develop a new theory, called the Entity Maximisation and Sustainability Model. Under this model, directors are to endeavor to increase the overall long-run market value of the corporation as an entity. At the same time as maximizing wealth, directors have to ensure that the corporation survives and is able to stay afloat and pursue the development of the corporation's position. Andrew Keay seeks to explain and justify the model and discusses how the model is enforced, how investors fit into the model, how directors are to act and how profits are to be allocated.
Analyzing in depth the existing theories which seek to explain the corporate objective, this book will appeal to academics in corporate law and corporate governance as well as law, finance, business ethics, organizational behavior, management, economics, accounting and sociology. Postgraduate students in corporate law and corporate governance, directors, and government regulators will also find much to interest them in this study.
Contents:
Preface
1. Public Companies: Context, Theory and Objectives
2. Shareholder Primacy
3. Stakeholder Theory
4. An Entity Maximisation and Sustainability Model
5. The Enforcement of the Entity Maximisation and Sustainability Model
6. Investors
7. Managerial Discretion and Accountability
8. Allocation of Profits
9. Epilogue
- John Quiggin, Journal of Business Law
'This is legal scholarship of the finest kind, concerned with an issue of supreme political, economic and social importance. Professor Keay takes the debate on the object of the modern public corporation by the scruff of its neck and skilfully navigates between the Scylla and Charybdis of the shareholder/stakeholder debate. This book, characterised by admirable analytical clarity and a huge amount of research, faithfully summarises the debate hitherto, and propels us to the next stage with a powerful argument, which challenges, effectively, both the stakeholder and shareholder theories.'
-Harry Rajak, University of Sussex School of Law, UK
The Corporate Objective addresses a question that has been subject to much debate: what should be the objective of public corporations? It examines the two dominant theories that address this issue, the shareholder primacy and stakeholder theories, and finds that both have serious shortcomings.
The book goes on to develop a new theory, called the Entity Maximisation and Sustainability Model. Under this model, directors are to endeavor to increase the overall long-run market value of the corporation as an entity. At the same time as maximizing wealth, directors have to ensure that the corporation survives and is able to stay afloat and pursue the development of the corporation's position. Andrew Keay seeks to explain and justify the model and discusses how the model is enforced, how investors fit into the model, how directors are to act and how profits are to be allocated.
Analyzing in depth the existing theories which seek to explain the corporate objective, this book will appeal to academics in corporate law and corporate governance as well as law, finance, business ethics, organizational behavior, management, economics, accounting and sociology. Postgraduate students in corporate law and corporate governance, directors, and government regulators will also find much to interest them in this study.
Contents:
Preface
1. Public Companies: Context, Theory and Objectives
2. Shareholder Primacy
3. Stakeholder Theory
4. An Entity Maximisation and Sustainability Model
5. The Enforcement of the Entity Maximisation and Sustainability Model
6. Investors
7. Managerial Discretion and Accountability
8. Allocation of Profits
9. Epilogue
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