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    maximizing shareholder wealth and payment of bribes

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    Ethics Question:

    Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad?

    If so,how might you explain the firm's position to shareholders asking why the company does not pay bribes when its foreign competitors in various nations clearly do so?

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    Maximizing shareholder wealth and never paying bribes when doing business abroad
    Maximization of shareholder wealth means maximization of the market value of existing shareholders' stock. To Keown et al. (2002), good decisions are those that create wealth for the shareholder. This decision may take the form of good investment decision that may affect how the existing stockholders and potential investors would react and consequently push an upward pressure on the price of the stock.
    To maintain the investment of existing shareholders and further attract new investors, company management come up with well studied and well planned decisions to ensure that the result would be an improved company ...

    Solution Summary

    The expert examines maximizing shareholders wealth and payments of bribes.