“At the turn of the last century, a fantastic characterization of stock exchange efficiency looked to a powerful, supernatural force referred to simply as ‘the market’, which was an oracle of true corporate value and perfect incentive. As prices of shares were assumed precisely to reflect the objective value of the company – because reached by the rational decisions of informed traders – it was thought that perfect behavioural incentives would be created by binding management tightly to share price …” (more)
[David C Donald, Oxford Business Law Blog, 22 December]
First posted 2020-12-22 11:33:58
Leave a Reply