The-definition.com

Definition

Corporate wealth maximization (CWM)

Corporate wealth maximization (CWM) is the corporate goal of maximizing the total wealth of the corporation itself rather than just the shareholders' wealth. Wealth is defined to include not just financial wealth but also the technical, marketing, and human resources of the corporation. "Consequently, it goes beyond the wealth measured by conventional financial reports to include the firm's market position as well as the knowledge and skill of its employees in technology, manufacturing processes, marketing and administration of the enterprise." (Ref. The Shaping of Strategic Direction, New York Basic Books, 1983.)

Share it:  Cite

More from this Section

  • Paul v. Virginia
    Paul v. Virginia refers landmark legal decision of 1869 establishing the right of the ...
  • Named-perils policy
    Named-perils policy coverage by an insurance contract that promises to pay only for those ...
  • Risk structure of interest rates
    Risk structure of interest rates is the relationship among the interest rates on various ...
  • Balloon Payment
    Balloon Payment is a large payment that may be charged at the end of a loan or lease. ...
  • Indemnity
    Indemnity is a principle that says when a loss occurs, the insured and his vehicle should ...