Shareholder’s Wealth Maximisation and Corporate governance

Abstract

Studies in finance and management indicate that an entity is surrounded by various groups that have an interest in it and each of the groups have their own objectives and needs in relation to the entity they have an interest in. Recently there has been pressure on the managers of the entities to run the entities in an ethical manner. This article thus focuses on how managers can employee sound governance in managing entities while ensuring that the primary objective of wealth maximisation of its owners is achieved.

The details in this article are entirely collected through secondary research due to the specialised nature of the article. Information is specifically obtained from scholarly articles in finance and management, various text books in finance and management and journals from professional bodies. The paper is focused on Shareholder’s wealth maximisation and corporate governance with citations of examples being given from the Zambian perspective.