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Episode Info

Episode Info:

Should corporations be run for their shareholders or for a broader set of stakeholders, including customers, workers, and the broader community? Moreover, how incompatible are these two ends? Does shareholder capitalism result in self-serving short-termism or responsible corporate governance? And is stakeholder capitalism viable without a company’s managers being directly accountable to its owners? On today’s episode, I discuss these (and many more) questions with Sanjai Bhagat.

Sanjai is a professor of finance at the University of Colorado Boulder. He has previously taught at Princeton University and the University of Chicago, and he worked previously at the US Securities and Exchange Commission. He is also the co-author, along with R. Glenn Hubbard, of a recent AEI Economic Perspectives paper, “Should the modern corporation maximize shareholder value?

You can also check out the transcript of this podcast here.

Learn more: Matthew Yglesias: One billion Americans | Glenn Hubbard: Looking back and ahead on the US economy | Caleb Watney: America's slowing innovation engine

The post Sanjai Bhagat: Shareholder capitalism vs. stakeholder capitalism appeared first on American Enterprise Institute - AEI.

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