Loughlin Hickey Head of KPMG's Tax Practice argues that the shareholder value revolution will not be complete until most managers are driven by post-tax variables too
It has taken a while since Franco Modigliani and Merton Miller began laying the foundations in Chicago in the 1960s but most business people would now agree that the shareholder value revolution is complete. Continental Europe resisted the revolutionaries longest but no-one now seriously disputes that the basic purpose of companies is to create value for their shareholders (albeit in the enlightened understanding that neglecting wider stakeholder views — for example employees and regulators — can destroy shareholder value).
There are still a few technical disagreements about what drives shareholder value but all now accept that 'total shareholder returns' (the increase in...
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Loughlin Hickey Head of KPMG's Tax Practice argues that the shareholder value revolution will not be complete until most managers are driven by post-tax variables too
It has taken a while since Franco Modigliani and Merton Miller began laying the foundations in Chicago in the 1960s but most business people would now agree that the shareholder value revolution is complete. Continental Europe resisted the revolutionaries longest but no-one now seriously disputes that the basic purpose of companies is to create value for their shareholders (albeit in the enlightened understanding that neglecting wider stakeholder views — for example employees and regulators — can destroy shareholder value).
There are still a few technical disagreements about what drives shareholder value but all now accept that 'total shareholder returns' (the increase in...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
