The dominant paradigm within the field of corporate governance views all investors as “owners,” while the managers are merely the agents of the investors. This “Corporate Governance Paradigm” (CGP) has developed in England since the great trading companies of the 1500s onward and is based on shareholders perceiving themselves as owners. The “relationship-marketing paradigm” (RMP) is very different. Investors are viewed as customers rather than owners, and managers have to capture, service, satisfy, and retain investors. In this paradigm, the managers behave like owners and pursue new investors.
Traditional economic theories about stock market efficiency suggest that the active marketing of corporate stock is unnecessary, ...
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