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by SoftTalker 905 days ago
No, I don't see that it does. Basically the idea is that a company should operate in a way that is beneficial to its owners (shareholders). This is what any sole proprietorship or partership also does. Growth is not the only way to measure that. Many companies do focus on maintaining success and return value to the owners by paying dividends. Driving the company to failure by relentlessly cutting costs in the name of "growth" is not in the interests of the owners.
1 comments

> This is what any sole proprietorship or partership also does. Growth is not the only way to measure that.

And yet, a bad quarterly earnings report will tank a stock...

> Driving the company to failure by relentlessly cutting costs in the name of "growth" is not in the interests of the owners.

Sure it is. They've maximized their personal revenue and now it's time to get out. The sooner the better.