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Explain why management may tend to pursue goals other than shareholder wealth maximization?
Wiki User
∙ 9y ago
The management may pursue goals other than wealth maximization in order to stay competitive and expand. The company may temporarily stop chasing shareholder wealth maximization in order to make their future benefits secure. That happens by diverting dividends or profits to upgrading systems, reinvesting in new technology and doing research.
Wiki User
∙ 9y ago
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