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What is meant by the goal of maximization of shareholder wealth?
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- Describe and explain the concept of market efficiency. In what sense is this concept an important part of the shareholder wealth maximization objective? Elaborate your answer. Please.What is market efficiency? How is the concept of market efficiency an important part of shareholder wealth maximization?discuss financial theories surrounding the shareholder wealth maximization paradigm (e.g. agency theory).
- How to encourage the managers to act in a way which is consistent with the objective of maximization of shareholder wealth?Is shareholder wealth maximization a concern in today's market?Identify the conflict between the goal of shareholder wealth maximization and other stakeholder concerns (sometimes referred to as environmental, social, and governance (ESG) concerns).