Pursuit of Shareholder Value Distorted Company Strategy

It has been strongly emphasized that the fundamental goal of all business is to maximize shareholder value, as the focus of business argument now changed from giant firm in product market to giant firm facing the capital market. Especially, since the 1990's, there was a significant increasing demand from top companies for shareholder value, and shareholder value was subsequently used in Britain and USA as a management justification for the corporate restructuring and downsizing which promised to deliver increased rates of return. …