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Shareholder wealth maximization strategy related to corporate governance structure.This prepare for corporate finance.

Shareholder wealth maximization strategy related to corporate governance structure.This prepare for corporate finance.

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Answer: Shareholder wealth maximization- It is a modern approach in which managers and companies maximize the wealth of shareholders by increasing the per share value. Shareholders are the owners of the company, they invest their hard earned money into the company. They are given growth in the stock price and also the regular dividend that is income for shareholders. Companies increase their stock prices by repurchasing them from the stock market so that per share value can be increased.

Corporate governance is the rules and laws with the help of which, company is operated, regulated and controlled. Shareholders wealth is maximized by taking into consideration the corporate governance

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