Profit Maximization Theory and Value Maximization Theory
Profit Maximization, Value Maximization, Finance, Economic Model, Traditional and Modern Approach.
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.
"Profit Maximization Theory and Value Maximization Theory", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.4, Issue 6, page no.284 - 289, June-2019, Available :https://ijsdr.org/papers/IJSDR1906054.pdf
Volume 4
Issue 6,
June-2019
Pages : 284 - 289
Paper Reg. ID: IJSDR_190720
Published Paper Id: IJSDR1906054
Downloads: 000347788
Research Area: Management
Country: BHOPAL, MADHYA PRADESH, India
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
