Business Administration - Management FIS403 Lecture 1: Chapter 1 - 2
30 May 2018
School
Department
Professor
But what else must an investor consider?
Goal of the Firm?
Market Share?
Size of the firm?
Return on investment?
Earnings per share?
Maximize shareholders’ wealth?
What about social responsibility?
What about going green?
Which maximizes profits?
Rotor project maximizes EPS in Year 1 and 2, but not Year 3.
Valve project maximizes EPS over 3 years.
Do you agree? What else do we need to look at?
Corporate Governance and Ethics
Goal is to maximize shareholders’ wealth so why should the
company be ethical?
Ethics and Share price – are they related?
Business Ethics –
Impact on Stakeholders
Is the action arbitrary or capricious?
Does it single out an individual or group?
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