In economic principles courses, textbooks emphasize that the goal of the firm is

to maximize profit. Is this the same thing as maximizing shareholders wealth?

Why or why not?

I don't think the profit maximization is the same to maximize shareholder

wealth.For the following reasons：

Profit maximization Maximize shareholder wealth

define
Companies selling According to the financial

products gain profits.When condition reasonable operating

we get the biggest profit, companies, bringing the most

we called the profit wealth for shareholders.

maximization.
Factors affecting ①Product revenue ①Number of shares

②The value of the shares

②Cost and expenses

（An increase in the number of stock

（When the product income is
price and the stock will increase
higher, lower cost and
shareholders' wealth.）
expense, will have higher

profits.）

principle
When marginal profit When the stock price highest,

equals marginal cost profit shareholder wealth

maximization maximization

（ Directly reflects the （Considering the time value of

economic efficiency of money and risk factors）

enterprises）

The service Enterprise managers in the Enterprise managers in the

object service enterprise, service shareholders, responsible

responsible for enterprise. for shareholders.

For example,

Tencent's 2018 net profit was 77.469 billion

RMB.The highest stock value for the same year was
466.

Tencent's 2019 net profit was 93.31 billion RMB.

The highest stock value for the same year is 390.

So, the company net profit maximum, the stock is

not necessarily the highest.

According to the above comparison we can conclude:Maximum profit is

not the same to maximize shareholder wealth