Rethinking the ontology of the shareholder model of the corporation

In: Society and business review, Band 8, Heft 1, S. 55-70

Abstract

PurposeThe purpose of this paper is to examine the critical assumptions lying behind the Anglo American model of corporate governance.Design/methodology/approachLiterature review examining the concept of a nexus of contracts underpinning agency theory which, it is argued, act as the platform for neo‐liberal corporate governance focusing on shareholder wealth creation.FindingsThe paper highlights the unaddressed critical challenge of why eighteenth century ownership structures are readily adopted in the twenty‐first century.Social implicationsA re‐examination of wealth creation and wealth redistribution.Originality/valueThe paper is highly original due to the fact that few contributions have been made in the area of rethinking shareholder value.