The model of shareholder value maximization and financialization has resulted in increased capital investment or a "retain and reinvest" strategy.

Question

Quizplus · Accepted Answer

The model of shareholder value maximization and financialization has actually resulted in a "maximize shareholder return" strategy which often involves prioritizing short-term profits and returning excess cash to shareholders through dividends and stock buybacks, rather than reinvesting it back into the company's long-term growth and development. This has led to a decrease in capital investment and a focus on increasing shareholder value instead.

The Model of Shareholder Value Maximization and Financialization Has Resulted