Concept information
Preferred term
shareholder wealth maximization
Definition
- The principle of shareholder wealth maximization (SWM) holds that a maximum return to shareholders is and ought to be the objective of all corporate activity. From a financial management perspective, this means maximizing the price of a firm's common stock. [Source: Encyclopedia of Business Ethics and Society; Shareholder Wealth Maximization]
Broader concept
Belongs to group
URI
https://concepts.sagepub.com/social-science/concept/shareholder_wealth_maximization
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