IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-16-1710-2_8.html
   My bibliography  Save this book chapter

Maximising the ‘Default Standard’ of Shareholder Value

In: The Key Code and Advanced Handbook for the Governance and Supervision of Banks in Australia

Author

Listed:
  • Francesco de Zwart

    (University of Adelaide)

Abstract

Chapter 8 of the Stage 2 Key Code and Advanced Handbook for Australian major banks examines the merits of maximising the ‘default standard’ of shareholder value. It asks “should the shareholder wealth-maximisation principle apply to banks and financial firms?” The discussion identifies that the market for corporate control may be weaker for banks than non-banks. We review the shareholder wealth maximisation principle and the short-term share price touching upon agency theory, shareholder primacy and the shareholder-wealth maximization principle. We ask whether the shareholder wealth-maximization principle exacerbated the severity of the financial crisis? We identify that, in the GFC, conservative risk strategies led to better survival outcomes in the crisis and we highlight the short-term danger of the emphasis on quarterly results.

Suggested Citation

  • Francesco de Zwart, 2022. "Maximising the ‘Default Standard’ of Shareholder Value," Springer Books, in: The Key Code and Advanced Handbook for the Governance and Supervision of Banks in Australia, edition 1, chapter 0, pages 95-101, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-1710-2_8
    DOI: 10.1007/978-981-16-1710-2_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-16-1710-2_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.