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Wealth maximization An empirical analysis of bonus issues

By: Contributor(s): Material type: Mixed materialsMixed materialsPublication details: 2013Description: 175-180Subject(s): NLM classification:
  • 658.15
In: MANAGEMENT ACCOUNTANTMSummary: In fiancial management wealth is defined as value of the shareholder's equity. It is generally agreed in theory that financial goal of the firm should be shareholders wealth maximization as reflected in the market value of the firm's shares. The financial manager must know or at least assume the factors that influence the market price of shares, otherwise he would find himself unable to maximize the market value of the companie's shares.
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In fiancial management wealth is defined as value of the shareholder's equity. It is generally agreed in theory that financial goal of the firm should be shareholders wealth maximization as reflected in the market value of the firm's shares. The financial manager must know or at least assume the factors that influence the market price of shares, otherwise he would find himself unable to maximize the market value of the companie's shares.

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