Rule of Law and Constitutional Democracy

Abstract

The purpose of this paper is twofold: i) to point out the determinants of a firm orientation to stakeholders' interests; ii) to analyze the relationship between shareholder value and stakeholder value as firm goals. Both issues are empirically verified on a sample of European listed companies. Empirical evidence shows that time, nationality, industry, size and level of growth of a firm determine its stakeholder ratings. Although the empirical evidence presented concerning the link between the creation of shareholder value and stakeholder value is neither unequivocal nor statistically significant, it can be inferred that a firm pursues stakeholders satisfaction to achieve a better value performance.