At least four major factors will induce management to adopt a shareholder orientation:(1)a relatively large ownership position,(2)compensation tied to shareholder return performance,(3)threat of takeover by another organization,and (4)competitive labor markets for corporate executives.Even when corporate executives own shares in their company,their viewpoint on the acceptance of risk may differ from that of shareholders. It is reasonable to expect that many corporate executives have a lower tolerance for risk. If the company invests in a risky project, stockholders can always balance this risk against other risks in their presumably diversified portfolios.The manager,however,can balance a project failure only against the other activities of the division or the company. Thus, managers are …—— 引自第3页
This emphasis on long-term cash flow is the essence of the shareholder value approach.Even the most persistent advocate of shareholder value understands that without customer value there can be no shareholder value. The source of a company's long-term cash flow is its satisfied customers.On the other hand, providing customer satisfaction does not automatically translate into shareholder value.Providing a comparable product at a lower cost than competitors, or providing or postsale services, are not genuine advantages if the total long-term cost, including the cost of capital, is greater than the cash generated by the sale. A business that provides more value than customers are willing to pay for is hardly competitive——and may not even be viable.The lesson is clear: When confronted with a…—— 引自第7页
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