According to the critics of stock price maximisation, “A practical problem with stock price as a performance measure is that it depends on a whole array of factors outside the company’s control. One can never be certain whether an increase in stock price reflects improving company performance or other environmental factors” (Higgins, Koski & Mitton, 2022, p. 60) In not more than 200 words, discuss the above quotation using GameStop Debacle
According to the critics of stock price maximisation, “A practical problem with stock price as a performance measure is that it depends on a whole array of factors outside the company’s control. One can never be certain whether an increase in stock price reflects improving company performance or other environmental factors” (Higgins, Koski & Mitton, 2022, p. 60) In not more than 200 words, discuss the above quotation using GameStop Debacle
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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According to the critics of stock price maximisation, “A practical problem with stock price as a performance measure is that it depends on a whole array of factors outside the company’s control. One can never be certain whether an increase in stock price reflects improving company performance or other environmental factors” (Higgins, Koski & Mitton, 2022, p. 60)
In not more than 200 words, discuss the above quotation using GameStop Debacle as a case study.
NB: GameStop Corp. is an American video game, consumer electronics, and gaming merchandise
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