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Theoretical views on the firm's objectives. Which one to choose?
Primož Dolenc, Igor Stubelj, Suzana Laporšek, 2012, published scientific conference contribution

Abstract: The paper focuses on theories on the objectives of the firm. The main questionis how firms are governed from the perspective of targeting the primary objective of its existence. We find that there are two mainstream theories: shareholder theory and stakeholder theory. The first theory puts shareholders (i.e. owners) in the primary position of the firm: the firm should primary focus on shareholderʼs interests being usually maximization of the firm's value. The stakeholder on the other hand focusses also on other stakeholders of the firm (i.e. employees, society, government, suppliers, customers etc.); the interests of shareholders are only one of the objectives a firm should follow. In the paper we present the overview of theoretical thoughts on the issue and present the empirical analysis that will be performed on Slovenian case.
Found in: ključnih besedah
Summary of found: ...and stakeholder theory. The first theory puts shareholders (i.e. owners) in the primary position of...
Keywords: firm objectives, shareholders, stakeholders, corporate governance
Published: 15.10.2013; Views: 1360; Downloads: 10
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