RE: Shareholder Wealth Maximization as a Goal of Financial Management
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Generally speaking, we shouldn't only focus on the long-term when investing but on the short-term returns as well. However, it is important to be "long-termers" especially in investments like cryptocurrency. There are projects that you can't get the best returns if you focus on the short-term.
Coming back to the subject of shareholder wealth maximization, recall this..
the shareholders wealth maximization is concerned with the maximization of the present value of all expected future streams of income.
A successful maximization of present value should result in an increase of the future value. This is why firms focus on decisions that can ensure an increased long-term market price of the firm.
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