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It then looks in to the theory behind this argument in the work of Frank Easterbrook and Daniel Fischel who conclude that the business is a contract between its Shareholders and Stakeholders, which again suggests Agency theory to me that while the Shareholders invest their money in the business the Managers run it to provide a service or good that its customers buy which inturn makes the profit for its shareholders...

Therefore one can conclude that Stakeholders are entitled to fixed payments e.g. Wages and Salaries while Shareholders are entitled to receive dividends after the fixed payments have been made.

The Argument points out that Shareholders are infact the “Residual Claimants” as they took the risk to invest their capital in the business in return for a dividend...

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A company is the property of shareholders, is an exploded myth A company is the property of the shareholders is an exploded myth Agency Theory Business Cycle Theory Commitment to Planning: Connecting With Customers, Providing Value to Shareholders, and Remaining Socially Responsible Distinguish between shareholder and stakeholder in a business context. Comment on the influence of shareholders on the management of a company and its allocation of rewards. Economic Theory Suggests that Markets are Efficient and Security Prices are Determined on the Basis of Fundamental Value Financial Managers Need Only Concentrate On Meeting The Needs Of Shareholders - No Other Group Matters role of shareholders Shareholder Primacy Shareholder Theory Ethical Theory &Amp; Business Q. How Important Is Theory To The Practice Of Athe Relationship Of Theory, Design And Practice In The Case Of Frank Lloyd Wright And Le Corbusier Does attachment theory provide a sound basis for advice on how to brin Does attachment theory theory provide a sounf basis for bringing up children

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