Why company owners might be the worst bosses? Economist explains

Ha-Joon Chang is stirring up a heated debate on corporate governance. The South Korean economist, known for challenging conventional capitalist wisdom, has declared that companies should not be run in the interest of their owners — and the reason might surprise you.

In a 13-year-old video whose clip recently resurfaced on social media, Chang dismantled the widely accepted belief that prioritizing shareholder profits leads to better business outcomes. Instead, he argues that this model is a ticking time bomb for both companies and the broader economy.

Why Owners Might Be the Worst Bosses

According to Chang, shareholders — who are often considered the ultimate decision-makers of a company — are paradoxically the least invested in its long-term future.

«Shareholders can sell their shares at the click of a mouse,» Chang explains. «They have no incentive to wait for long-term results.»

In contrast, employees, suppliers, local communities, and customers have far more at stake in a company's long-term health but often have little to no influence on major business decisions.

Profit Now, Crisis Later

The economist pointed out how modern corporations prioritize short-term gains over long-term stability. Companies are increasingly hoarding profits instead of reinvesting in research, employee training, or infrastructure.

In the 1970s, American corporations distributed about 35-45% of their profits as dividends. Today, that figure has skyrocketed to over 60% — leaving far less capital for innovation or growth.

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