What do shareholders ‘own’?

During a recent roundtable, I was startled when a participant brought me a recent Financial Times (Nov. 10, 2015) article, titled “Shareholders think they own the company – they are wrong,” subtitle elaborating “So whose is the business? No one’s, just like the river Thames.” Eh?

If this article appeared in a negligible media, I would not have bothered wasting a minute on it. But thatFinancial Times, that many consider the best international newspaper – which in many respects it is (perhaps together with the Wall Street Journal), published it, presumably passing some editorial control, requires a response, participants told me. After all, the issue the article raises is not matter of opinion and freedom of speech, but just knowing the facts. And important ones – since discussing how to regulate and tax corporations are daily front page news.

...Reuven Brenner holds the Repap Chair at McGill University’s Desautels Faculty of Management.  The article draws on his last books, Force of Finance and World of Chance.

Read full article: Asia Times, 3 February, 2016