The shareholder value model has reduced corporate reinvestment of cost savings and earnings back into the business and increased corporate repurchasing of company stock to increase share prices.

Question

Quizplus · Accepted Answer

The shareholder value model prioritizes increasing shareholder value through share price appreciation, which has led to a reduction in corporate reinvestment and an increase in stock repurchasing.

The Shareholder Value Model Has Reduced Corporate Reinvestment of Cost