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Linkage of Management Decisions to Shareholder’s Value

Author

Listed:
  • Shrikant Krupasindhu Panigrahi
  • Yuserrie Bin Zainuddin
  • Noor Azlinna Binti Azizan

Abstract

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. The main objective of this paper is to increase awareness and relationship between management and shareholders of the companies. 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.

Suggested Citation

  • Shrikant Krupasindhu Panigrahi & Yuserrie Bin Zainuddin & Noor Azlinna Binti Azizan, 2014. "Linkage of Management Decisions to Shareholder’s Value," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 3(1), pages 114-125, January.
    • Handle: RePEc:rbs:ijfbss:v:3:y:2014:i:1:id:405
    DOI: 10.20525/ijfbs.v3i1.173
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    References listed on IDEAS

    as
    1. Aivazian, Varouj & Booth, Laurence & Cleary, Sean, 2003. "Dividend policy and the organization of capital markets," Journal of Multinational Financial Management, Elsevier, vol. 13(2), pages 101-121, April.
    2. Y. Subba Reddy & Subhrendu Rath, 2005. "Disappearing Dividends in Emerging Markets?: Evidence from India," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(6), pages 58-82, November.
    3. J. David Cummins, 2000. "Allocation of Capital in the Insurance Industry," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 3(1), pages 7-27, March.
    4. repec:eme:marpps:10222529200500009 is not listed on IDEAS
    5. Michalski, Grzegorz, 2007. "Portofolio Managament Approach in Trade Credit Decision Making," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(3), pages 42-53, September.
    Full references (including those not matched with items on IDEAS)

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