The Ted Talk is certainly aimed at personal saving but I am interested in how this can be viewed from the corporate perspective as well.

There are many different types of company and objectives certainly vary but for publicly quoted companies as we saw in our textbook, the traditional and historic objective was always to maximize shareholder value (this is probably changing but a topic for another day!)

To maximize shareholder value suggests a company needs to invest for future growth. Without investing in new assets such as equipment then management risks growth stagnating.

Class:

Do you think that firm investment is equivalent to personal savings?

REF:

Ross, S. A., Westerfield, R. W., Jordan, B. D., Pandes, J. A., & Holloway, T. (2022). Fundamentals of corporate finance (11th Canadian ed.). McGraw-Hill Ryerson.

• Chapter 1

Benartzi, S. (2011). Saving for tomorrow, tomorrow [Video]. TED Conferences. https://www.ted.com/talks/shlomo_benartzi_saving_more_tomorrow?language=en

 

 Provide a brief and comprehensive response with IN-TEXT Citations.