Title: Historical Evolution of Firm's Operational Objectives: Theory and Practice
Abstract:Firm's operational objective has been a long-debated topic, which triggers various theories, such as Profit Maximization, Firm's Value (shareholder's wealth) Maximization, Stockholder's Value Maximiza...Firm's operational objective has been a long-debated topic, which triggers various theories, such as Profit Maximization, Firm's Value (shareholder's wealth) Maximization, Stockholder's Value Maximization, Sales Maximization and Firm's Size Maximization. After analyzing questionnaire data, this paper finds out the following results: 1) Chinese firms nowadays still regard Profit Maximization as the most important operational objective, and care little about interests of stockholders such as firm staffs; 2) although most firms set several operational objectives at the same time, these objectives are logically self-conflicting, which indicates that firms' choices on operational objectives in reality are influenced by multiple factors; 3) Logit regression illustrates that firm's types, sizes, operational styles, manager's office tenure, age, and shareholding are closely associated with firm's choices on operational objectives.Read More
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
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