Paper details:
We would perhaps all agree that the corporate goal is to maximize the shareholders’ wealth and the wealth should be better seen through the price of the shares listed on stock market. Many people however believe that stock price sometimes does not reflect well the financial performance of the firm because of various factors such as the general market conditions. So, is there any implication about the role of market forces in determining the wealth of the shareholders in general? How would market principles have a say on the performance of the management?
