Firm Value

Ravi Lonkani

A chapter in Firm Value - Theory and Empirical Evidence from IntechOpen

Abstract: The chapter explains the meaning of firms from the perspective of economic researchers in the past to the views of current dates. Traditional model of a firm's value is linked firmly with shareholders' value. This traditional view is used in finance and in business for many years. To enhance a firms' value, we need to maximize shareholders' value. According to this view, any activities in firms can increase the value of firms if it increases the value of the Shareholders. However, traditional concept of shareholders' value as the explanation to firms' value is challenged by a group of researchers. This group believes that value of firms should not be based on just shareholders but should include all groups of stakeholders. After giving some ideas on the meaning of firm, the corporate sustainability value of firm in terms of economics and finance is explained.

Keywords: sustainability; performance; stakeholders; firms value (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:143174

DOI: 10.5772/intechopen.77342

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