why should shareholder wealth maximization be the overriding objective of management
Answers
Answered by
57
Answer:
Because the goal of shareholder wealth maximization is a long term goal achieved by many short-term decisions to maintain or exceed the expected value of shareholders. ... Because serving the interests of stakeholders can create profit for the firm, create value for shareholders
Answered by
19
Explanation:-
The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm. ... In addition, the greater the risk associated with receiving a future benefit, the lower the value investors place on that benefit.
Similar questions