When a small business is first getting started, its goal may appear relatively straight forward: to make as much money as possible for its owners. But for a business to be successful long term, a new ...

I asked Prof. Bainbridge whether I could cross-post this from Corporate Finance Lab, and he kindly agreed: What is the purpose of a corporation? Is it, as Nobel Economics laureate Milton Friedman ...

Maximizing corporate profit, as an idea, seems straightforward, simple and obvious. In terms of basic managerial policy, however, it's anything but. Maximizing corporate profits, at first blush, seems ...

Stephen Bainbridge, the William D. Warren distinguished professor of law at U.C.L.A. School of Law, is the author, most recently, of "Corporate Governance After the Financial Crisis." Updated April 16 ...

When a company focuses on maximizing shareholder value, it’s actively working to increase the wealth of its shareholders. This could mean boosting profits, increasing dividends or driving up the stock ...

Fund manager James Montier sparked a modest sensation a few weeks ago with a speech and Web presentation claiming “shareholder value maximization is the world’s dumbest idea.” In a nutshell, his ...

Forbes contributors publish independent expert analyses and insights. I write about the creation and management of exceptional wealth. The ability of portfolio company senior executives to use ...