A way to provide extra value (TT Feb03 p39-40)

Other things being equal, we can expect a property’s value to be lower when subject to the negligence of an absentee landlord than if an active interest is taken in its upkeep. In a similar way, we can expect the value of a company to be greater if it has active and interested shareholders. Prudently managed, the cost of maintaining the property in good order – equivalent to the cost of the shareholder’s corporate governance activity – should be less than the long-term benefits that accrue to the owner.