EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 1, Problem 6QTD
Summary Introduction

To discuss: The reason why management have a tendency to to follow goals other than wealth maximization of shareholders.

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Why should shareholder wealth maximization be the overriding objective of the management?
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Finance experts contend that the ultimate goal of a firm should be maximization of shareholder wealth. On the other hand, managers tend to pursue different goals. Discuss the concept of shareholder wealth maximization, the goals of management and the reasons for the goal differences.
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