The Critical Evaluation of Arguments in Favour of Shareholder Primacy

Abstract

There is no doubt that the concept of shareholder first, as a system, has a long historical tradition. under the shareholder primacy model of corporate governance, both the board and senior executives are required to devote themselves to the maximization of shareholders' interests. in reality, when confronting conflicts of interests, managers might have become accustomed to ensuring the achievement of shareholders' interests at the expense of other interested persons, which reflects the prevailing ideology of shareholder primacy. moreover, facing challenges from some novel concepts, the advocates of shareholder primacy should also pay more attention to the research of a balance between egoism and altruism for the sustainable development of the company.