Economics Homework Help

The goal of the firm is to create value for the company’s owners. This is often defined as maximizing shareholders wealth. However, is this definition too narrow and overly focused on the short term? Could such a short-term focus create long-term problems for the company? Explain by providing some examples. Do you think this is a problem in Saudi Arabia?

Search the SEU library or the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.

For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs. Let your instructor know if you have any questions and enjoy your search.

Required:

Chapter 1 in Foundations of Finance – The Logic and Practice of Financial Management

Saudi Vision 2030 Document. (2017). https://vision2030.gov.sa/sites/default/files/report/Saudi_Vision2030_EN_2017.pdf

Denning, S. (2019, August 19). Why maximizing shareholder value is finally dying. Forbes. https://www.forbes.com/sites/stevedenning/2019/08/19/why-maximizing-shareholder-value-is-finally-dying/#23bdf8516746

Faraj, M. (2019). The State as a shareholder: A study of partial privatization and its impacts on corporate governance in the Kingdom of Saudi Arabia. Journal of Sharia & Law, 2019. https://ssrn.com/abstract=3475404

World Bank Group. (2019). Saudi Arabia – Doing Business 2020. https://www.doingbusiness.org/content/dam/doingBusiness/country/s/saudi-arabia/SAU.pdf

Recommended:

Chapter 1 PowerPoint slides in Foundations of Finance – The Logic and Practice of Financial Management

Rafay, A. (2020). HandBook of research on theory and practice of global Islamic finance. PA: IGI Publishing, USA. https://ssrn.com/abstract=3524898