It is a debate whether a company should create actual value for their shareholders or not.
Here are some tangible ways it can do so:
By acquiring another company, an enterprise adds revenue/operating income/net income for shareholders and may actually inflate its future expectations.
Beware of cash misusage and issuing stock for the purchase.
- Paying Dividends.
This is the most tangible way a company can create value for their shareholders. It puts money in their pockets.
- Repurchase of Stocks.
By buying back shares, a company diminishes the amount in circulation, which in turn, increases the price per share.