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Unformatted text preview: causing the total market value of the public shares to fall. If the owners of the corporation are to base financial decisions on a single goal, that goal must be precise, not allow for misinterpretation, and deal with all the complexities of the real business world, including but not limited to: legal issues, environmental standards, ethical and cultural considerations, international dimensions, labor demand and rights, tax. Management and stockholder wealth Retention of position of power in long run is by becoming sensitized to shareholder concerns. Sufficient stock option incentives to motivate achievement of market value maximization. Powerful institutional investors are increasing management more responsive to shareholders...
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- Spring '10