Strategic Management Accounting for Shareholder Value Maximisation Essay

Strategic Management Accounting for Shareholder Value Maximisation - Essay Example This report presents an insightful study on the concept of shareholder value maximisation and the efforts that are undertaken by management to achieve it. It demonstrates that in an effort to enhance shareholder value the management generally puts behind the importance of serving the interest of other stakeholders like employees, customers, suppliers and society that share a long-term association with the company. However, protection of interests of these stakeholders is important to ensure the maximisation of shareholder value. This report, therefore, concludes that in order to accomplish the objective of shareholder value maximisation in an effective manner, the management should also strive to serve the interests of other stakeholders. Shareholders are the true owners of a company and have ultimate residual claims on its financial assets. Management is responsible to serve the interests of shareholders and engage the efforts of the whole organisation towards the enhancement of val ue for shareholders as well as the other stakeholders that have their interest in the corporation.