CONTEMPORARY CORPORATE GOVERNANCE ISSUES: theories into practice Custom Essay
In the contemporary world, the shareholders value in the company is highly appreciated as it is perceived to be of beneficial to the company as a whole. This is due to the fact that they possess indirect and direct influence to the operability of the company and the profit outlay and therefore the company focus on the dependency on the shareholders in order to realize their long run goals. Many companies ensure that shareholders existence is of key, if not ultimate, importance to the company (Anson, 2006). It culminates that their value is created when the investments returns of the company is less than the investment costs. Shareholders minimum return expectations is based on the investments they made which is equal to going return valued at low-risk investment such as U.S. treasury securities and inclusion of the risk premium associated with the company’s risk level. The company’s focus on the shareholders value should endeavor to stay abreast with shareholders interests.