Answer to Question #180204 in Management for Eben

Question #180204

What goals might be pursued by managers instead of maximization of shareholder wealth?


1
Expert's answer
2021-04-12T13:11:27-0400

Instead of seeking to maximize shareholder wealth, managers “satisfice, ” or seek acceptable levels of performance, while maximizing their own welfare. Maximization of their own personal welfare (or utility) may lead managers to be concerned with long-run survival (job security).


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Comments

Okyere
17.04.21, 09:54

Very good

Derrick Boateng
15.04.21, 15:43

what is meant by the agency problem in the context of a public limited company? How is it possible for the agency problem to be reduced in a company

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