Corporate Governance: Stakeholder Value Versus Shareholder Value

Abstract

Unsatisfied with the dominating shareholders point of view, that appears to be too limited to build a relevant theory of corporate governance, we propose an enlarged definition of the value which may be called, the stakeholder value. This definition and its associated measure are more suitable for the stakeholder approach to the firm and more relevant to understand the value creation and sharing mechanisms.

Keywords: shareholder value, stakeholder value, corporate governance, value creation, value sharing

JEL Classification: G390