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Director's Duties In A Post-Enron World: Why Language Matters, Margaret M. Blair
Director's Duties In A Post-Enron World: Why Language Matters, Margaret M. Blair
Vanderbilt Law School Faculty Publications
This essay observes that, in the face of corporate scandals of the last few years, a number of prominent advocates for shareholder primacy have retreated to the position that directors and officers should attempt to maximize long run share value performance, rather than short term value. But the mantra of share value maximization has no distinctive meaning and policy implications if it is not interpreted to mean maximization of short term value. This is because the actions required to maximize share value in the long run are indistinguishable in practice from actions taken in pursuit of other more broadly-stated goals …