8 Is maximizing stock price good for society, employees, and customers? Employment growth is higher in firms that try to maximize stock price. On average, employment goes up in Firms that make managers into owners(such as LBo firms) Firms that were owned by the government but that have been sold to private investors Copy right C 2002 by Harcourt, Inc. All rights reserved1 - 8 Copyright © 2002 by Harcourt, Inc. All rights reserved. Is maximizing stock price good for society, employees, and customers? ◼Employment growth is higher in firms that try to maximize stock price. On average, employment goes up in: ⚫firms that make managers into owners (such as LBO firms) ⚫firms that were owned by the government but that have been sold to private investors