TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

MAXIMIZING STOCKHOLDER WEALTH [1 record]

Record 1 1985-04-10

English

Subject field(s)
  • Financial and Budgetary Management
CONT

Thus far we have considered relationships between managers and stockholders and between stockholders and bondholders. Other factors that may influence the validity of our working hypothesis of the goal of maximizing shareholder wealth will be considered now. [These include] maximizing versus satisficing ... maximizing wealth versus utility ... social responsibility.

OBS

Returning to the interest of the owners (the providers of the equity capital) of the firm, we see that the goal of the firm is to maximize the value of the owners' equity. This may be stated another way as maximizing the wealth of the stockholders. To be more precise, if we are considering a corporation, the goal of the firm is to maximize the value per share of the common stock in the long run.

Key term(s)
  • maximizing the wealth of shareholders
  • maximizing the wealth of stockholders

French

Domaine(s)
  • Gestion budgétaire et financière
DEF

Cette expression de théorie financière désigne l'objectif principal, sinon l'un des principaux objectifs, de la politique générale d'une entreprise. Cette politique tendra à maximiser la valeur actuelle nette des dividendes ou plus-values que peuvent attendre les actionnaires.

Key term(s)
  • maximisation de la richesse de l'actionnaire

Spanish

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