Open lecture by Oliver Hart: Should managers maximize shareholder value?
In his lecture, Oliver Hart opposes the dictum of Milton Friedman that management of companies should maximize long-term shareholder value. He argues that maximization of shareholder welfare is not the same as maximizing shareholder value if shareholders are pro-social. He discusses whether the first objective is sustainable in the presence of an active takeover market, and shows that there is a tendency for public companies to behave less ethically over time; furthermore, he discusses how companies can pursue shareholder welfare maximization without falling prey to agency problems.
The lecture is open for all interested.
Questions concerning the lecture can be addressed to Professor Henrik Lando at email@example.com
Organised by Law Department