Fisher separation theorem

Definition

A theory which suggests that a firm will attempt to maximize its present value, no matter what the firm owners may think are their personal objectives. The separation theorem hypothesizes that firm owners will make decisions to first maximize the present value, and only then make decisions which will bring them closer to reaching their personal goals. This theorem was developed by the well-known economist Irving Fisher.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Fisher effect Fitch Investors Service