Essays Tagged: "shareholder wealth"
Should CEO's Make Such Exorbitant Salaries?
rkers. To others who defend the trend, it represents just rewards for successful efforts to enhance shareholder wealth. To determine which view is more accurate, this paper will provide answers to the ... often negotiated by forecasting compensation packages that are based on the projected increases in shareholders' wealth as a result of the anticipated increase in management performance. If stockhold ...
Subjects: Businesss Research Papers > Case Studies
Profit Maximization / Maximization of Shareholder Wealth
The primary goal of financial management regarding corporations should be to maximize shareholder wealth on the whole. If management was to only concentrate on profit maximization, they ... rporate status helps release management from possible enourmous financial liability issues. Second, shareholders are the key of checks and balances in a corporation. Management is wise to heed the con ... e key of checks and balances in a corporation. Management is wise to heed the concerns and needs of shareholders.The book uses a good example when referring to mergers. A merger in the future of a cor ...
Subjects: Businesss Research Papers
Ethical obligation of companies - maximise shareholder wealth vs. socially and environmentally responsible
4a) The only ethical obligation of companies is to maximise shareholder wealth.In such a free economy, the companies do have an obligation to use their resource ... igation to use their resources usefully and engage in activities designed to maximise the wealth of shareholders, so long as it stays within the rules of the game. Since the companies buy the goods an ... seriously damage their long-term viability, even while attempting to maximize the wealth of current shareholders. This is because when companies ruthlessly rub out their rivals in order to pursue prof ...
Subjects: Businesss Research Papers > Accounting
Internal Rate of Return (IRR) and Net Present Value (NPV) are both powerful tools used in business to determine whether or not to invest in a particular project; both methods have its pros and cons.
tial to anticipate profitability.As it is assumed that the objective of a firm is to create as much shareholder wealth as possible for its owners through the efficient use of resources, the preferred ... is a worthwhile investment. This means finding the NPV of a business will have a direct bearing on shareholder wealth. Net present value is a way of comparing the value of money now with the value of ...
Subjects: Businesss Research Papers
The Role of the Financial Manager
The Role of the Financial ManagerThe primary goal of every corporation is to maximize shareholder wealth, primarily through cash dividends and share value appreciation. To this end, the ... ational chart of a corporation.)All of these decisions should be made with the intent of maximizing shareholder wealth. However, this tenet is not without obstacles. Most significantly, corporations m ... Enron, for personal gains.Theoretically, when the financial manager acts in accord with maximizing shareholder wealth, the shareholders benefit through cash dividends and share price gains. With resp ...
Subjects: Businesss Research Papers > Accounting
Mergers and Acquisitions.
fficiently and with the proper motives, can help managers realise their ultimate goal of maximizing shareholder wealth."A merger is the combining of two or more companies into a single corporation. Th ... nate competition. At the core of mergers and acquisition lies the sole objective of maximization of shareholder wealth regardless of the scale of the business. This maximization of the wealth must be ...
Subjects: Businesss Research Papers
Ethics and Social Responsibilities
IntroductionIn a capitalistic market, the measure of success is the maximization of shareholder wealth and maximized profit. These goals are what drive the economy and effects more tha ... from a capitalistic market. The statement, "Since the goal of the public corporation is to maximize shareholder wealth, management should take any action necessary to achieve this goal so long as no l ...
Subjects: Businesss Research Papers > Management
Social Responsibility in managing todays organisations
his approach is economist Milton Friedman who believed the only obligation a company had was to its shareholders. Cooper and Hill (2004:1) also argues that business's are commercial, and not social or ... cial, and not social or political institutions and the central focus of any business is on building shareholder wealth. Durie (2002:401) however argues that managers who operate with this one-dimensio ...
Subjects: Businesss Research Papers > Management
Company Overview
nsibility and ethics of the organizations evident in their annual reports in relation to maximizing shareholder wealth.Since 1950 Centex Homes is said to be the primary business of Centex Corporation, ... independent contractors, representatives, suppliers agents, consultants, government, the public and shareholders. The culture in KB Home appears to be one in which they strive for the greatest level o ...
Subjects: Businesss Research Papers > Management
Financial Forecasting Paper: Riordan Manufacturing
ally plan the management of their business or suffer profit loss and financial loss from investors. Shareholders want their wealth to be maximized by the corporation in the future as well as the prese ... d to raise capital. By strategically planning on how successfully to meet profit goals and maximize shareholder wealth companies will continue to grow.Riordan Manufacturing is a global plastics manufa ...
Subjects: Businesss Research Papers > Case Studies
Profit and Shareholder Wealth Comparison Paper
s conglomerates. Analyzing the market-to-book ratios of the two companies will provide a measure of shareholder wealth. The ratios will also help understand which company has provided greater sharehol ... of maximizing profits. From those analyses, the strategy of each company regarding the risk to the shareholder’s investments will be clarified.Today, GE is “11 technology, services and fina ...
Subjects: Businesss Research Papers > Case Studies
Analyze the Consequences of Globalization
rs that drive companies to expand business to beyond national boarders and look globally to enhance shareholder wealth.Government DriversDuring the past 20 years developing governments have adopted a ... added value allows business managers who previously avoided some markets more attractive for adding shareholder wealth and may make their companies more competitive in marketing their products or serv ...
Subjects: Businesss Research Papers
Ethics
resources to be managed in the interests of the 'prime beneficiaries' of the business - the owners (shareholders). In this view, the managers who run the businesses for the owners have a main obligati ... re established to serve the purposes of their owners, and it is in the best interest of a company's shareholders to see the value of their shares increase through the organisations pursuit of profitab ...
Subjects: Businesss Research Papers > Accounting
Kuiper Leda Supply Chain Defense
ned themselves to continue to meet the customer demands while ensuring fiscal responsibility to the shareholders.Kuiper Leda Supply Chain Defense Kuiper Leda's supply chain has to evolve with their bu ... upply Chain Defense Kuiper Leda's supply chain has to evolve with their business growth to maximize shareholder wealth and satisfying the end customer. By developing a supply chain strategy, Kuiper Le ...
Subjects: Businesss Research Papers > Management
Lawrence Sports Working Capital Policy Paper
flow crisis in times where Mayo has not honored the existing terms of payment. In order to maximize shareholder wealth, Lawrence Sports must establish cash balance requirements that will meet existing ... using quick ratios, finance can determine if they are keeping appropriate cash amounts to maximize shareholder wealth.Ethical Implications Stakeholder perspectives are something that needs to be cons ...
Subjects: Businesss Research Papers > Management
Business Ethics and Corporate Social Responsibility
tances can reflect an oxymoron, because the central concept and duty of corporations is to maximize shareholder wealth - sometimes in disregard to consumers' well-being. According to Martin (2002), "t ... Corporations often willingly engage in socially responsible behavior precisely because it enhances shareholder value. They choose to undertake philanthropic activities such as supporting local museum ...
Subjects: Businesss Research Papers
Corporate Compliance Benchmarking
orate compliance issues and necessary measures have been successfully implemented to ensure greater shareholder wealth and managerial accountability and transparency. In addition, this paper will draw ... o consideration company stakeholders as governmental participants, the principle participants being shareholders, company management, and the board of directors" (Introduction to corporate governance, ...
Subjects: Businesss Research Papers > Case Studies
MBA 540 - Wealth Maximization Concepts Worksheet
is closely associated with corporate growth and corporate size. Corporate wealth is not necessarily shareholder wealth. Corporate wealth tends to lead to increased growth by providing funds for growth ... ich new equity is raised. Increased growth and size are not necessarily the same thing as increased shareholder wealth." (Ross, Westerfield, Jaffe, 2005, pg. 15) "Financial planning establishes guidel ...
Subjects: Businesss Research Papers > Management
Wealth Maximization Concepts Worksheet
r the next 5 years. On the other hand, if LEI merges with Shang-wa then this will help LEI maximize shareholder wealth. "This viewpoint suggests the corporate firm will attempt to maximize the shareho ...
Subjects: Businesss Research Papers
Corporate Benchmarking
internal and external growth strategies, describe working capital management strategies to maximize shareholder wealth, describe the challenges of cross-border growth strategies, assess organizational ... nd the Board of Directors to have a firm hand on whatever direction the company is going.Maximizing Shareholder WealthIn order to maximize shareholder wealth companies must have capital available to a ...
Subjects: Businesss Research Papers > Management