We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Assignment for Shareholder Wealth Maximization - Essay Example

Comments (0) Cite this document
Assignment for "Shareholder Wealth Maximization" Table of Contents Table of Contents 2 Introduction 3 Shareholder Wealth Maximization 3 Goals and Objectives of the Management 4 Analysis and Recommendation 5 Conclusion 5 Reference 6 Bibliography 7 Introduction In this modern era of business there is a pressure on the private companies to stick to the rule of ethics and to give more priority to shareholders’ wealth maximization than the objective of profit maximization…
Download full paperFile format: .doc, available for editing
Polish This Essay91.6% of users find it useful
Assignment for Shareholder Wealth Maximization
Read TextPreview

Extract of sample
"Assignment for Shareholder Wealth Maximization"

Download file to see previous pages Shareholder Wealth Maximization The management of a company finds it tough when they are considering that what should be their goal- profit maximization of the company or the wealth maximization of the shareholders. The profit maximization objective can be pursued by the company management for the short term period. The company should has the objective to gain as much as profit by using the resources effectively and optimally. At the other side the company should take the long term objective of the stockholders’ wealth maximization. The stockholders of the company are interested for getting the returns for the long term as well as short term. The wealth maximization objective should be undertaken by the company management for the long term as it considers the following factors. The risk or uncertainty associated with the performance and the return associated with the company performance. The wealth of the company for the long term is analyzed as the company has to plan for providing the long term return. The timing of providing the returns is also considered (Shim and Siegel, p.2). If the company takes the long term objective then they can also fill their short their objective. If they are meeting the stockholder’s objective then the stockholders also invests in the company, as a result the investment will increase and the performance of the company would be better if they utilize those resources effectively. From the researcher point of view shareholder’s wealthy maximization should be the ultimate goal of the company. Goals and Objectives of the Management For analyzing the goals and objectives of a company the researcher has selected Coca-Cola Company which is listed in the New York Stock Exchange (NYSE) (MSN Money, “Coca-Cola Co”). The goals and objectives of the company are as follows. The company’s objective is to start at least one program related to physical activity in the countries where they are operating by the end of 2015. Reducing the carbon emission from the manufacturing unit of the company. For the development of the communities they are associating with the management has planned to return 1% of the operating income to the communities. Packaging material efficiency improvement. Improvement of the water efficiency. The wastewater treatment improvement is among the main goals of the company (The Coca-Cola Company, “Global Sustainability- Select Goals and Targets”). The goals of the vision 2020 package of Coca-Cola is to make the profit margin double from now, enhance their portfolio They work with 300 bottling partners and are working for the growth target in terms of the operating income and unit cases of volume (The Coca-Cola Company, p.2-33). Among these goals the strategic objectives of the company like increasing the operating income, increase the unit case of volume, enhancing the portfolio or improving the packaging material efficiency improvement support the shareholders’ wealth maximization goals when the company is also maintaining the corporate social responsibility. They have the goals of developing the communities in the countries they are operating; also they are working for being environmental friendly through their projects. Analysis and Recommendation Coca-Cola Company has a sustainable long term ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Assignment for Shareholder Wealth Maximization Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1441746-assignment-for-shareholder-wealth-maximization
(Assignment for Shareholder Wealth Maximization Essay)
“Assignment for Shareholder Wealth Maximization Essay”, n.d. https://studentshare.org/finance-accounting/1441746-assignment-for-shareholder-wealth-maximization.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Corporate Social Responsibility and Shareholder Value Maximization
In the recent past, particularly over the last two decades, the ideology of maximization of shareholders value as a norm of corporate management has been under great scrutiny. The issue of whether companies should engage in social matters affecting the society has been a source of controversy with some people supporting corporate social responsibility while others are opposed to it.
12 Pages(3000 words)Essay
Mergers and Acquisitions as a Strategic Mean of Creating Value and Maximizing Shareholder Wealth
As a part of corporate and management strategy; organisations tend to find alternatives creating more value by maximising shareholder wealth (King, Slotegraaf, Kesner, 2008 pp 24-45). The discussion aims at underpinning and analysing the role of mergers and acquisitions as a strategic mean of creating value and maximising shareholder wealth in comparison to the alternative organic growth.
12 Pages(3000 words)Essay
Shareholder Wealth
"Shareholders" are legal persons (humans or corporations) that own a business. Ownership is derived by investing funds or assets, or buying stakes from previous owners. Shareholdings represent a limited legal claim on the ownership of a business, its assets and liabilities.
6 Pages(1500 words)Assignment
Corporate Goal of Maximizing Shareholder Value
Historically, the fundamental corporate objective has remained focussed on maximizing share holder value with a notion that this fundamental objective can ensure existence & growth of the corporations. This has worked traditionally quite well but has a conflicting relationship with another fundamental corporate objective - the corporate governance.
5 Pages(1250 words)Essay
Profit Maximization
Though the public links corporate goals and values solely to profit maximisation, it is evident from company behaviours and undertakings that financial success and social considerations are not treated as a zero-sum game. Companies are increasingly attempting to establish explicit statements reflecting their goals to take responsibility of immediate and long-term social and environmental consequences of their decisions.
10 Pages(2500 words)Essay
Shareholder Wealth Maximisation Essay
The last word 'wealth' according to the dictionary means any resource that has some value in terms of utilization and trade. If the whole axiom is to be translated it would be 'to gain the highest achievable value for the owners of the company. Therefore in order to achieve this axiom, managers especially finance managers take decisions that are in accordance with this statement.
6 Pages(1500 words)Essay
Shareholder Wealth Maximisation
However, in the recent times, this concept has precariously affected the economies and raised doubts on the appropriate Corporate Governance practices and Corporate Social Responsibility (CSR) (Smith L.M., n.d). Corporate Governance is the system of governing a business corporation, its functions and functionaries, creating sustainable shareholder value and safeguarding the stakeholder's interest.
10 Pages(2500 words)Essay
Impact on shareholder wealth due to steel mergers
The bilateral trade agreements between the nations allow the business organizations to commence business operations in other nations thus providing a base to establish their international ventures which also bring prosperity to the acquirer nation as well as the target nation in terms of employment, taxes, sales, etc.
13 Pages(3250 words)Essay
There are many popularly suggested business objectives, while academically the objective to maximise shareholder wealth is considered superior. Discuss. (In y
Increasing consequences of environmental damage, health mishaps, alleged use of exploitative cheap labour, and use of sub-standards materials came into light, while companies continue to highlight objectives like social responsibility, customer-centered approach and
3 Pages(750 words)Essay
Maximization of Shareholder Wealth
This process is the underlying objective of all corporate activity. Shareholder wealth maximization is a long-term financial goal, which is comprehensive and reflects
1 Pages(250 words)Assignment
Let us find you another Essay on topic Assignment for Shareholder Wealth Maximization for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us