Jeffrey Lipshaw on the Shareholder Wealth Maximization Theory
In this episode, Jeffrey Lipshaw, Professor of Law at Suffolk University Law School, discusses his article "The False Dichotomy of Corporate Governance Platitudes," which will be published in the Journal of Corporation Law. Lipshaw begins by discussing his background as a corporate lawyer and how it informs his perspective on corporate law theory. He describes the dominant shareholder wealth maximization theory of corporate governance, and explains why he thinks it doesn't and shouldn't control how directors actually make decisions. And he explains how we ought to think about shareholder interests in relation to the business judgment rule.