How to Win Shareholder Loyalty Available to Purchase

From the viewpoint of corporate directors and managers, mergers and acquisitions have become the tail that wags the dog. The “market for corporate control” (as it has been dubbed by approving economists) now makes a substantial impact on trading activity in the stock market, contributing to the displacement of the traditional market function of capital formation. “Maximization of share‐holder value” has become a rallying cry—not for managers‘ efforts to make corporate enterprises more productive, but for takeover proponents’ belief that selling the business should be the primary goal of corporate ownership.