Stakeholder Wealth Maximization And The Choice Of The Goal Of Financial Management In China

The goal of financial management is one of the basic theoretical issues of financial management. It is also an issue of great concern among finance circles home and abroad. This paper focuses on stakeholder wealth maximization and the choice of the goal of financial management in China. Based on stakeholder theory, this paper compares shareholder wealth maximization with stakeholder wealth maximization, analyzes the goal of stakeholder wealth maximization and discusses the evaluation system of stakeholder wealth maximization. This paper holds that stakeholder wealth maximization is the rational choice for the goal of financial management compared with shareholder maximization. In addition, stakeholder wealth maximization is the goal that suits China.