Linkage of Management Decision to Shareholder's Value: EVA Concept

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. To achieve the objective, portfolio theory, capital asset pricing model and mode...

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Bibliographic Details
Main Authors: Panigrahi, Shrikant, Yuserrie, Zainuddin, Noor Azlinna, Azizan
Format: Article
Language:English
Published: Beykent University 2014
Subjects:
Online Access:http://umpir.ump.edu.my/id/eprint/6607/1/Linkage_of_management_decision_to_shareholder%27s_value-_EVA_concept.pdf
http://umpir.ump.edu.my/id/eprint/6607/
http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/274
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Institution: Universiti Malaysia Pahang
Language: English
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Summary: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. 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.