The companies value doesn't change, but shareholders hold X number of stock, so to them their portfolio improves.

When companies split their stock, it's to keep the price at a reasonable amount for people to buy - when 1 stock is worth $100 it makes the "minimum buy-in" very high. If the stock is split 1:10, the share price drops by 10x but all shareholders get 10x more share, so it doesn't affect them much.

Ultimately listed companies work for shareholders' benefit.