Shareholder Value

The approach of value-oriented business management based on the principles of "shareholder value" has come to dominate the control of businesses in many branches. Specially listed (joint-stock) companies follow this principle.

However, the recent turbulences in financial markets and critical developments in the real markets have triggered doubts about this close connection between business management and the expectations of the financial markets. How useful is this connection for successful long-term management?

Our research activities in this field focus primarily on the effects of financial market logic in business. Which advantages and disadvantages, which possible mistakes in the reasoning and alternatives, can be noticed? We are particularly interested in a comparison of prospering family businesses looking back on many years of success.

Our research topics in this context are:

• In which way does the payment of the management following the logics of the capital market support or hinder the company's success?
• Which effects can be noticed in terms of legitimization of management?
• Do family businesses and joint-stock companies treat assets in a similar manner?