Why Is Maximization of Shareholder Value an Important Aspect of Value Based Management?
Maximization of shareholder value is an important aspect of value-based management because it emphasizes the priority that management places on share-holders. This helps management to show their respect and recognize the importance for share-holders. Value-based management can benefit from maximization of share-holder value because it will provide both the consumer and the producer with many benefits.
Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent...