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Shareholders care about way more than maximizing profits

by sangha cpa | Sep 22, 2017 | Finance | 0 comments

University of Chicago Booth School of Business professor Luigi Zingales discusses the debate surrounding corporate profit maximization. He talks about a research paper he authored, which makes the point that profit maximization is important to shareholders, but it’s not the only thing they care about. Put simply: shareholder welfare is not equal to market value.

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