Shareholder wealth maximization
Shareholder wealth maximization is the primary financial goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run value of the firm's common stock.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Shareholder wealth maximization. The primary financial goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run value of the firm's common stock.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
