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Predatory Value Extraction – How the Looting of the Business Corporation Became the US Norm and How Sustainable Prosperity Can Be Restored - Oxford Scholarship Online
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Predatory Value Extraction: How the Looting of the Business Corporation Became the US Norm and How Sustainable Prosperity Can Be Restored

William Lazonick and Jang-Sup Shin

Abstract

This book explains how an ideology of corporate resource allocation known as “maximizing shareholder value” (MSV), that emerged in the 1980s and came to dominate strategic thinking in business schools and corporate boardrooms, undermined the social foundations of sustainable prosperity, resulting in employment instability, income inequity, and slow productivity growth. In explaining what happened to sustainable prosperity in the United States, it focuses on the growing imbalance between value creation and value extraction that reached to the extent of “predatory value extraction.” Based on “Th ... More

Keywords: Predatory value extraction, sustainable prosperity, corporate governance, innovative enterprise, executive pay, institutional investors, hedge-fund activism, maximizing shareholder value, MSV, employment instability, income inequality

Bibliographic Information

Print publication date: 2019 Print ISBN-13: 9780198846772
Published to Oxford Scholarship Online: January 2020 DOI:10.1093/oso/9780198846772.001.0001

Authors

Affiliations are at time of print publication.

William Lazonick, author
Professor of Economics, University of Massachusetts Lowell

Jang-Sup Shin, author
Associate Professor of Economics, National University of Singapore