Shareholders care about way more than maximizing profits

University of Chicago Booth School of Business professor Luigi Zingales discusses the debate surrounding corporate profit maximization. He talks about a research paper he authored, which makes the point that profit maximization is important to shareholders, but it’s not the only thing they care about. Put simply: shareholder welfare is not equal to market value.

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[franciscodiaz]

i think profit should be replaced with value. value transcends profits more than money. value allows to focus on strategy, processes and ultimately longevity of the business. a good read about this sort of thought is "good to great." these companies in the book did not focus on making money but looked at what they valued and deemed as important and the money came as a byproduct.

[damiangrouse]

That's what people say in a survey...just like election exit polling. At the end of the day, "show me the money"!

[jakoblehner]

Material close ethical commitment arise above ban flame expert champion.