“Shareholder value is the dumbest idea in the world.”—former GE CEO Jack Welch
By Virgil Scudder
How many times do we hear it said on quarterly shareholder earnings calls or investor days? The company did this, or that, to “enhance shareholder value.” Not infrequently the action referred to is a take-over or merger. But, since more than half of corporate mergers fail, it’s hard to see how shareholders, especially those in for the long haul, will see their value enhanced. The share price ...
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