Shareholders and stakeholders value creation: an analytic foundation for value creation indicators

The academic debate on the theory of the firm has been monopolized for a long period by the contraposition between the shareholders model and the stakeholders model. Jensen (2001) introduced the concepts of "enlightened value maximization" and "enlightened stakeholders theory", recognizing the importance of the different constituencies for the maximization of the firm's market value. Masera (2006a) developed a "a quantitative synthesis of the enlightened stakeholders theory", supporting the idea that the total value of the firm is maximized when the management maximize both the remuneration of the shareholders and the efficiency and the satisfaction of the all the other stakeholders. In this paper, this thesis will be formalized by proposing a model in which a stochastic behavior for the most relevantvalue indicators is assumed. We will show that the model can be easily extended, allowing the simultaneous analysis of both value creation and capital structure problems.