search query: @author Werder, A. von / total: 6
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| Author: | Werder, A. von |
| Title: | Corporate Governance: Vertragen sich die deutsche Unternehmensverfassung und das Shareholder Value-Prinzip? |
| Journal: | Zeitschrift für Betriebswirtschaft
1997 : ERGÄNZUNGSHEFT 4/97, p. 9-16 |
| Index terms: | SHAREHOLDER VALUE CORPORATE GOVERNANCE COMPANIES SHAREHOLDERS STRATEGY GERMANY |
| Language: | ger |
| Abstract: | A Shareholder Value orientation turns out to be especially problematic, if strategies designed to increase shareholder wealth threaten existing jobs. However, even in these cases the question of compatibility of the Shareholder Value principle with the corporate governance structure of German companies cannot be answered with a simple yes or no. If business units have an insufficient performance, the invested capital has to be shifted to more profitable activities in a socially responsible disinvestment program. On the ohther hand, strictly maximizing shareholders' objectives contradicts the valuations of the German corporate governance structure. Moreover, by stressing the Shareholder Value orientation in times of a high profit situation, a firm's potential for adding value can be compromised rather than enhanced and lead into a "trap". |
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