INTERNATIONAL JOURNAL OF SCIENTIFIC DEVELOPMENT AND RESEARCH International Peer Reviewed & Refereed Journals, Open Access Journal ISSN Approved Journal No: 2455-2631 | Impact factor: 8.15 | ESTD Year: 2016
open access , Peer-reviewed, and Refereed Journals, Impact factor 8.15
Profit Maximization Theory and Value Maximization Theory
Authors Name:
Dr. Abhishek Tripathi
Unique Id:
IJSDR1906054
Published In:
Volume 4 Issue 6, June-2019
Abstract:
The paper looks into the two theories of firm, the profit maximization and value maximization theory. The paper focuses on the description of two concepts rather than comparison. It analyses the two theories from the application point of view. in managerial economics, the theory of the firm based on profit maximisation or value maximisation is generally used in explaining managerial decision making. Managers who strive for maximisation of their own interests or utility rather than the firm’s profits or value are likely to be replaced by the shareholders of the firm. Alternatively, if managers do not fully exploit profit opportunities, they will be taken over by other firm which sees its profit potential.
Keywords:
Profit Maximization, Value Maximization, Finance, Economic Model, Traditional and Modern Approach.
Cite Article:
"Profit Maximization Theory and Value Maximization Theory", International Journal of Science & Engineering Development Research (www.ijsdr.org), ISSN:2455-2631, Vol.4, Issue 6, page no.284 - 289, June-2019, Available :http://www.ijsdr.org/papers/IJSDR1906054.pdf
Downloads:
000337070
Publication Details:
Published Paper ID: IJSDR1906054
Registration ID:190720
Published In: Volume 4 Issue 6, June-2019
DOI (Digital Object Identifier):
Page No: 284 - 289
Publisher: IJSDR | www.ijsdr.org
ISSN Number: 2455-2631
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