What is the primary concern of shareholders in corporate governance?

The primary concern of shareholders in corporate governance is maximizing the return on their investment. Shareholders invest in a company with the expectation of earning a profit, which is typically realized through increased stock prices and dividends. Corporate governance mechanisms are designed to ensure that the company is managed in a way that aligns with shareholders' interests, promoting financial performance and accountability from the management team.

In this context, shareholders often advocate for policies and practices that enhance the value of their investments, leading to greater focus on financial metrics, sustainability, and strategic planning that can drive growth. Their involvement in corporate governance also includes voting on significant corporate matters, like mergers or changes in management, which directly affects their investment returns.