Open AccessLinkage of Management Decisions to Shareholder’s Value
Author(s) -
Shrikant Panigrahi,
Yuserrie Zainuddin,
Noor Azlinna Azizan
Publication year - 2014
Publication title -
international journal of finance and banking studies
Language(s) - English
Resource type - Journals
ISSN - 2147-4486
DOI - 10.20525/ijfbs.v3i1.173
Subject(s) - shareholder , dividend , business , dividend policy , shareholder value , linkage (software) , finance , portfolio , investment decisions , economics , accounting , corporate governance , behavioral economics , biochemistry , chemistry , gene
In this paper, the author investigated the influence of management decisions like capital structure, dividend policies, remunerations, credit policy decisions and investment decisions on shareholder wealth maximization. The main objective of this paper is to increase awareness and relationship between management and shareholders of the companies. To achieve the objective, portfolio theory, capital asset pricing model and modern financial theory providing evidence on the linkage between management decisions to shareholder’s value. Shareholders are only concerned about the value of shares of the company and the amount of return in the form of dividend paid. Thus in order to meet the demands of the shareholders of the company, managers needs to increase their abilities and skills to overcome the organizational goals. Thus the main goal of this paper is to discuss on the role of management decisions towards increasing shareholder’s wealth and meet organizational goals.