Persistent URL of this record https://hdl.handle.net/1887/19835
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- Introduction
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Corporate Law and Economic Stagnation: How Shareholder value and Short-termism Contribute to the Decline of the Western Economics
Corporate law is an accomplice for the advent of shareholder value and thus shares the blame for the low rates of capital accumulation. The post-Bretton Woods shareholder value index -a numerical legal index- shows the progress that the corporate law has made at the shareholder value level during the past 40 years.
Corporate law has escalated the divestment of long-termist investors from equity and has preserved the trend towards short-termism. Corporate law developments generating bias...Show moreThe advent of shareholder value (‘Great Reversal in Corporate Governance’) coupled with shareholdership’s increasing short-termism (‘Great Reversal in Shareholdership’) have contributed to the low growth rates in France, Germany, The Netherlands, UK, US. The study presents a causality chain: the two Great Reversals led to higher equity payout ratios and lower retention ratios in corporations that in turn caused lower rates of capital accumulation that in turn caused lower growth rates.
Corporate law is an accomplice for the advent of shareholder value and thus shares the blame for the low rates of capital accumulation. The post-Bretton Woods shareholder value index -a numerical legal index- shows the progress that the corporate law has made at the shareholder value level during the past 40 years.
Corporate law has escalated the divestment of long-termist investors from equity and has preserved the trend towards short-termism. Corporate law developments generating bias in favor of short-termism are presented.
‘Long Governance’ emerges as a remedy for stagnation. It is a management theory calling management to observe the long-run interests of all the shareholders who hold, have held, or will hold stock and a legal concept requiring directors’ duties to be discharged towards maximizing long-term corporate welfare.Show less
- All authors
- Masouros, P.E.
- Supervisor
- Bartman, S.M.; Varoufakis, Y.
- Committee
- Wessels, B.; Goudswaard, K.P.; Winter, J. de; Dorresteijn, A.F.M.; Teichmann, C.
- Qualification
- Doctor (dr.)
- Awarding Institution
- Faculty of Law , Leiden Univeristy
- Date
- 2012-09-18
- Publisher
- Den Haag: Eleven International Publishing
- ISBN
- 9789490947828
Juridical information
- Court
- LEI Universiteit Leiden