SHAREHOLDER WEALTH MAXIMIZATION 1
SHAREHOLDER WEALTH MAXIMIZATION 4
Shareholder Wealth Maximization and Social Change Initiatives
The financial objective of a corporation or business is to maximize the wealth to the shareholders. The shareholder advances capital to the companys managers, and it is the duty of the managers to utilize the funds as the stakeholders stipulate. The managers have a duty to both the shareholders and the stakeholders (Ross, Westerfield, Jaffe & Jordan, 2016). Stakeholders are potential beneficiaries, and risk bearers of the business and the managers have the responsibility of ensuring no ethical rights of the stakeholders are violated and that the interests of the stakeholders are balances when making decisions (Hiebl, 2015). The duty of the corporation to the stakeholders brings the connection between its main objective and corporate social change initiatives.
Creation of value for the company comes hand in hand with the maximization of the profit as the prime objective of the company (Hiebl, 2015). An increase in the profit margin of the company helps in increasing the value of assets for the business owners. Different factors assist in increasing the value of assets in a company and in the process help in maximizing the shareholder wealth (Ross, Westerfield, Jaffe & Jordan, 2016). These factors include the maximization of the earnings after tax, the earning per share, and the market price per share (Carraher & Van Auken,...
In other respects, however, the evidence does not readily conform to theoretical predictions. For example, if gross job turnover is taken as a rough proxy for labor market flexibility -- and since stringent EPL reduces both hiring and firing -- it is quite surprising to find that job turnover rates are very loosely related to EPL rankings. Most remarkably, not only are the estimates for Italy and France, at
Shareholder Activism in the Churches and Human Rights Protection Stakeholder activism The purpose of this work is to critically examine the involvement of churches in shareholder activism and its contribution to the protection of human rights. The historical path of the churches their involvement of shareholder activism and human rights campaign efforts as well as the motivational factor that compels their involvement will be examined. And as well the teachings and beliefs
Communities are looking for social expenditures by the business to benefit the community (hospitals, stable employment, donations, and investments). Managers face a challenge in making such crucial decisions. Therefore, corporations must be clear on how to make tradeoffs between these often inconsistent and conflicting interests from different stakeholders. In the Shareholder Wealth Maximization model, three types of maximization exist in a company. They include total stakeholder maximization, shareholder maximization and
Management Practices Outline how you would manage the risk of change when planning a strategic change management process. Whenever any kind of change is taking place in an organization, there more than likely will be resistance to the new ideas that are being introduced. Part of the reason for this, is because these changes are often challenging the status quo. Where, everyone will face new standards and greater scrutiny over a
(Millstein, 2005) Since United States and Australia are countries which are already considered to be globally competitive that has attained its almost perfect status in the world market, developing countries are basically taking into account every step that they make for which they might soon adapt to attain the same position in the global context. Therefore, studying both countries' corporate governance is necessary in order for other developing countries to
The corporation or seller could benefit by developing marketing strategies prior to consumer reviews being available online. Seller Response to Novice and Expert Consumers Before allowing consumers to post product reviews on a corporations or sellers website, the seller should consider the size of the segments of expert consumers and novice consumers. For example, the seller may benefit from selling certain products if a significant number of expert consumers exist, especially
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