Shareholder value maximization has to do with what we called increasing a company's worth just to benefit its shareholders and hence this approach has to do with both such s the advantages and disadvantages as well.
For the advantage It has to do with a corporate goal with shareholder interests, which gies on encouraging efficient resource allocation which has to do with adopting a diverse strategy just to prioritize innovation, and alongside with the cost management, and market competitiveness to enhance returns, hence this value goes on attracting more investors, which as much increases the company’s capital for expansion.
And on the opposite side this emphasis on that which has to do with short-term profits over that of the overshadow long-term sustainability and which might go on to reduce investments in employee welfare, which may also cause financial manipulation if the strategies fail.
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