this post was submitted on 26 Nov 2023
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Dumb question: did the laws change or was it a change in trends to maximize shareholder returns?
There was a cultural shift in the 1970s:
See https://corpgov.law.harvard.edu/2019/08/22/so-long-to-shareholder-primacy/#:~:text=The%20shift%20to%20shareholder%20primacy,increase%20its%20profits.%E2%80%9D%20Subsequently%2C
Why did that change?
I think it was a self-beneficial fad. All the rich shareholders think it's a great idea, as do many on boards (since the shareholders elect them), so it becomes dogma. All fads eventually lose their shine, as this one is.
But I'm neither an economist, nor a historian, so take my guess with a big grain of salt.
A shift in corporate mindset to maximize growth and profit. Go research Jack Welsh.
https://podcasts.apple.com/gb/podcast/part-one-jack-welch-is-why-you-got-laid-off/id1373812661?i=1000612309266
Not at all is that a dumb question.
See the other comments.
It is much more cultural than anything else.
As the stock market moved from buy and hold for the long term to the more manic trading we see today where shit like robinhood allows everyone to trade options