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Shareholders care about way more than maximizing profits

Jacqui Frank,Kara Chin,Joe CiolliSep 22, 2017, 23:56 IST

Business Insider

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.