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In the context of the shareholder wealth maximization model discuss the managerial actions that can influence the value of the firm?
Wiki User
∙ 9y ago
Managerial actions that can influence the value of the firm include preserving the reputation of the firm by being ethical and responsible. Also, they need to invest in providing quality services and products that will keep the firm competitive.
Wiki User
∙ 9y ago
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What influence does stakeholders have on a company's actions?
Depending on what stakeholder it is, a shareholder = company gaining lots of profit consumers = operating in an ethical manner employees = better working enviroment
Who establishes the ethical tone for the entire firm?
The board of director hold the ultimate responsibility for their firms' success or failure, as well as for ethics of their actions. Thus the ethical tone is set up at the top of organisation. The actions and attitudes of the board greatly influence the ethical climate of an organisation
What is the decision making process?
It is rightly said that the first important function of management is to take decisions on problems and situations. Decision-making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself.Drucker recommended the scientific method of decision-making which, according to him, involves the following six steps:Defining / Identifying the managerial problem,Analyzing the problem,Developing alternative solutions,Selecting the best solution out of the available alternatives,Converting the decision into action, andEnsuring feedback for follow-up.
Are you financially responsible for the actions of your spouse?
In belgium it's till the age of 23 that you are financially responsible for the actions of your spouse.
How are managers bonded to shareholders?
1. Shareholders determine the membership of the board of directors by voting. 2. Contracts with management and arrangements for compensation can be made so that management has an incentive to pursue shareholders' goals. 3. Fear of a takeover gives managers an incentive to take actions that will maximize stock prices 4. Competition in the managerial labour market may force managers to perform in the best interest of shareholders. Firm willing to pay the most will lure good managers.
What influence does stakeholders have on a company's actions?
Depending on what stakeholder it is, a shareholder = company gaining lots of profit consumers = operating in an ethical manner employees = better working enviroment
What are the significance of managerial ethics?
Managerial ethics, thus, is the code of moral managerial conduct that raises questions about the "goodness" or "badness" of managerial actions, motives and objectives.
What are some actions an entrenched management might take that would harm shareholders?
REFERENCE:Brigham and Ehrhardt (2009) Financial Management Theory andPractice (13th Ed) 13.4 Managerial Behavior and Shareholder Wealth, page 531 (Retrieved onJuly 23, 2011)
What managerial actions can influence the value of the firm in the context of the shareholders wealth maximization model?
The risk and return trade-off or the attitude of management towards risk will play a major role in determining the value of a firm. This for example will form a basis of whether to invest in government bonds where the risk of default is low and return equally expected will be low, this is the opposite of a decision to invest in shares where the risk is high but the expected return can equally be high. In terms of SWM, the value of the firm will be reflected in the market value of a company's shares.
How did religion influence Martin Luther King's actions?
mitht
Propaganda?
Intensive use of mass media to spread political ideas
How did Molly Pitcher's parents influence her?
By her confidence in her self and the actions that she had made.
How can government actions or policies influence aggregate demand?
Government actions can control or influence the aggregate demand of its country by controlling pricing. Aggregates are the total amounts of goods that a country purchases for various things.
Is stock price maximation good or bad for society?
The same actions that maximize stock prices also benefit society. Stock price maximization requires efficient, low cost operations that produce high quality goods and services at the lowest possible cost. Stock price maximization requires the development of products and services that consumers want and need, so the profit motive leads to new technology, new products and new jobs. Also, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise and well located business establishments.
Actions taken by the federal government which influence economic activity are know as?
The economic actions taken by government are known as fiscal policy.
What are the Positive actions that influence reincarnation?
Showing or not not showing - Care and Consideration to others.
What does family role mean?
The actions of a family that influence other members of the family.
