The Analysis About Financial Objective Of Stakeholder Wealth Maximization

The financial objective 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 the financial objective of stakeholder wealth maximization.According to the modern enterprise theory, the enterprise is not merely shareholder's enterprise ,but also is all stakeholder's enterprise at the same time. This article first introduces that the modern enterprise theory how to influence the financial objective , introduces the shareholder theory and the stakeholder theory separately, and reviews the stakeholder theory emphatically. Through analysing and recognizng stakeholder of the enterprise, as well as the main principle of company government caring the stakeholder, it shows that the stakeholder theory has already deeply affected the financial behavior of our country's enterprises. Then by comparising stakeholder wealth maximization and shareholder wealth maximization, the shareholder wealth maximization mainly cares shareholder's interests, which the enterprise should stand in shareholder's standpoint and serve it to guarantee the' shareholder wealth maximization;But stakeholder wealth maximization stands in with the enterprise all stakeholder, which enables each stakeholder of the enterprise to achieve the maximization in the long-term. The article attempts to analyse the diffiences of the shareholder wealth maximization and the stakeholder wealth maximization from four aspects :the property theory, the government structure, the capital theory, the benefit pursuing, and discussed the diffiences with the enterprise value maximization . At the same time it further analyzes overall difference of the shareholder supreme theory and the stakeholder theory from the root. Then through historical reviewing financial objective of our country enterprise from theory and the practice, analysing actual financial environment of our country, it points out that the stakeholder wealth maximization is the rational choice of financial objective for our country enterprise, and it comes up with in this foundation the system of financial objective of the stakeholder wealth maximization, and discusses how to appraise each, stakeholder level of this the system of financial objective. In the end, through practice and the example, this paper points out that the stakeholder wealthmaximization conforms to the requirement of the enterprise's long-term sustainable development, which makes up the shareholder wealth maximization only to pay great attention to the shareholder interests but neglect other stakeholder interests. With the social economic development and further development of the stakeholder wealth maximization theory, this objective will become the leading goal of our country enterprise's financial objective , thus this gradually will help financial management of our country enterprises to step onto modernized and scientific path.