Download or read book Investigating Shareholder s Wealth Creation Through Economic Value Based Measurement Tools written by Shrikant Krupasindhu Panigrahi and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Investigating Shareholder s Wealth Creation Through Economic Value Based Measurement Tools written by Shrikant Krupasindhu Panigrahi and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Driving Shareholder Value Value Building Techniques for Creating Shareholder Wealth written by Roger A. Morin and published by McGraw Hill Professional. This book was released on 2000-12-27 with total page 424 pages. Available in PDF, EPUB and Kindle. Book excerpt: BusinessWeek and Harvard Business Review tout value-based management as the benchmark for creating and enhancing shareholder value. Numerous industry-leading companies embrace VBM. Now Driving Shareholder Value travels to the heart of VBM, providing approaches, perspectives, and strategies managers can use to implement VBM for better decisions and maximized shareholder wealth. The authors’ one-of-a-kind value creation framework—complete with dozens of useful worksheets, checklists, case studies, and more—draws on current practices plus 25 years of VBM lessons, including: *The four guiding principles of VBM activities *Five steps to institutionalizing VBM *An integrative VBM framework—complete with step-by-step examples

Download or read book A Study on the Integrated Approach of Shareholder Value Analysis written by Tony Müller and published by Anchor Academic Publishing (aap_verlag). This book was released on 2014-10 with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt: The theory of shareholder value is an issue that has to comprise a dichotomy in terms of the standpoint from which it is looked at. Shareholders and the management of a company in many cases still represent counterparts whereas interests do not continuously align. In this study shareholder value theory is approached by investigating the shareholder perspective in correspondence to shareholder wealth gains in the UK market environment through the implementation of six major financial performance measurement methods including: the Price/Earnings ratio, the Discounted Cash Flow Model, the Dividend Valuation Model, the Economic Value Added, the Market Capitalization, the Capital asset Pricing Model and the shareholder value approach as suggest by Alfred Rappaport. Having applied them to six selected stock listed companies enabled the author to develop a shareholder value ranking according to their financial performance and the deriving shareholder value dedication.

Download or read book In Search of Shareholder Value written by Andrew Black and published by Financial Times/Prentice Hall. This book was released on 2001 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder value can no longer be seen as the latest craze in the corporate classroom. It's grown up. It's redefining the syllabus by which we learn to profit or perish. It has moved into the mainstream of global corporate life where would-be winners can no longer afford to ignore it.Drawing on the experience of PricewaterhouseCoopers' worldwide network of companies and clients, this new edition of a best-selling title will provide you with the key to unlocking the secrets to real wealth creation. The impact of the information revolution, the integration of capital markets, and the increased ability of investors to compare and contrast corporate performance has put shareholder value high on the corporate agenda. These days, investors injecting money into your company are looking for a financial return as good as, if not better than, if they had invested in any other. Today's businesses need to maximize value for their shareholders or watch their share price plummet as investors vote with their feet and transfer their money and their trust into competitors' hands.Benefits In Search of Shareholder Value explains the concept of shareholder value and shows how it can help companies and their managers make better, more informed, and proactive decisions. It looks at the philosophy of value creation and at the global financial environment in which value-based management can thrive, and it transforms the insights of market analysts into management tools that can be used throughout the company to add genuine improvements to performance. The book covers every aspect of learning how to deliver value to your investors, including: introducing the basic concepts of shareholder value analyzing the theory and history behind shareholder value establishing the true cost of your capital the market's preference for judging performance on cash flow rather than profit and loss how shareholder value is being applied within emerging economies. principels of value-based management

Download or read book Investigating the Explanatory Power of Economic Profits Eva Versus Accounting Profits on Stock Returns as a Measure of Shareholders Wealth Creation An Empirical Study of the FTSE 100 written by Moustafa El Tamamy and published by . This book was released on 2014 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main motivation behind this study is to find out if Economic Value Added (EVA®) is truly the best predictor of share returns and if shareholders should rely on it solely and forget accounting measures as claimed by its founders (Stern Stewart & Co.). This research investigates the superiority of Economic Profits (EVA®, EVA® spread and EVA® momentum) over traditional accounting measures (ROA, ROE, EPS, Net Income and NOPAT) in explaining stock returns and also aims to find out which is truly the best predictor of share returns. To achieve this, economic measures and accounting measures were used as the independent variables and stock returns as the dependent variable. Three different regression tests were applied: a panel data regression testing economic measures and accounting measures separately; a stepwise panel regression test and another panel regression test testing all of the independent variables along with a post-hoc chi-square analysis. These tests were applied to 25 publicly listed companies on the FTSE100 from 2009 to 2012. From both the panel data regression and the stepwise regression it was found that economic measures do not dominate earnings and it was also found that ROA has a stronger explanatory power than all of the economic measures. However, EVA® momentum was also found to have a strong positive impact on share returns, all of the other tested variables were found to be statistically insignificant. From the third test it was also found that the ROA had the highest explanatory power, followed by EVA® and EVA® momentum; the rest of the variables were also found to be statistically insignificant. Moreover, this study found that 76% of share returns are explained by different factors other than both economic and accounting measures combined. This study concludes that EVA® is not the best predictor of share returns and shareholders should not rely on it solely but should also rely on traditional accounting measures, especially the ROA. Furthermore, shareholders should also take into consideration different factors such as technical, economic and political analysis when undertaking investment decisions as share returns are not entirely explained by performance measures.

Download or read book A Preliminary Investigation Into the Relative Usefulness of the Economic Value Added Measure as a Surrogate for Shareholder Value Creation written by Brendan Green and published by . This book was released on 1995 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Creation of shareholder value by application of EVA written by Anne-Kristin Rademacher and published by GRIN Verlag. This book was released on 2013-04-25 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (undergraduate) from the year 2012 in the subject Business economics - Controlling, grade: 1,7, University of Applied Sciences Essen, language: English, abstract: Creation of shareholder value; this simple idea has become a principle of corporate governance over the past fifty years (Lazonick et al, 2000). Managers shall maximize the value of their business by efficiently allocating resources and hence increase the wealth of shareholders (Worthington et al, 2001). The operationalization of this objective is done by various indicators. Shareholders, managers and other interested parties strongly follow these in order to assess business and predict future performance. EVA is one of these indicators. The following paper presents the concept and measurement behind the trademark EVA. It is practically applied for the company Fresenius in a simplified way. Theoretical and practical analyses reveal strengths and weaknesses of measurement and concept. In general it can be said that EVA is one approach to identify value creation and degrading. The concept can be used for investment decisions as well as performance appraisal. Main disadvantage has been identified to be a high degree of complexity in order to derive the true EVA. If adjustments are not made the measurement appears to be similar to other residual income indicators.

Download or read book An Analytical Study of Economic Value Addition to Shareholders Wealth written by Arvind Anandrao and published by Infotech. This book was released on 2023-01-03 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: INTRODUCTION: Shareholders value maximization, which is the heart of economic growth, as a long-term proposition that delivers higher economic output and prosperity through productivity gains, employment growth, and higher wages. Management's most important mission is to maximize shareholders' wealth, j Therefore wealth creation is dependent on management's performance. In order to measure the performance of the company's management; accountants, finance managers, investors, analysts, and other users use several tools. It would be very useful to measure and compare the shareholder's wealth created by the company on the basis of traditional and modem measurement criteria for the purpose of best corporate governance and improving creditworthiness. An attempt is made in the present study to measure the shareholder's wealth on/ the basis of traditional and modem methods and compare them to know the relative importance of measurement

Download or read book EVA and Shareholder Value Creation written by Wajeeh Elali and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, a variant of residual income often called Economic Value Added (EVA)1 or Economic Income (EI) has become a popular concern in academia and business communities. This study investigates the general hypothesis that EVA is more highly associated with shareholder wealth and firm values than are traditional performance measures. Two commonly used value-based performance metrics namely, Total Shareholder Return (TSR) and Tobin's Qare also considered to highlight the valuerelevance ofEVA vis-a-vis these measures in predicting shareholder wealth. Using a sample of panel data of around 12,000 firm-year observations taken from . the Stern Stewart 1000 EVA/MVA database and the DATASTREAM file over the period 1991-2002, this study finds compelling evidence that shareholder value is a function of EVA. This study also provides evidence consistent with the notion that EVA outperforms other traditional performance measures in explaining shareholder wealth. Valuerelevance tests reveal EVA to be more highly associated with shareholder wealth than TSR and Tobin's Q. The incremental tests also suggest that EVA possesses the largest explanatory power (or information usefulness) over TSR and Tobin's Q. These results conclusively support the claims made by EVA proponents and further support the potential usefulness of the EVA metric for internal and external performance.

Download or read book Outperform with Expectations Based Management written by Tom Copeland and published by Wiley. This book was released on 2005-10-03 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: CEOs and managers live and die by delivering superior performance to shareholders. This is why expectations-based management has been developed. Outperform with Expectations-Based Management (EBM) introduces a revolutionary new performance metric that links performance standards, performance measurement, and the achievement of performance. It's easy to say that if a CEO can get performance measurement right, then performance improvement will follow. But what is the "right" measure of performance, and how do you use it to improve performance? Authors Tom Copeland and Aaron Dolgoff answer these questions and many more, as they show you how to find the measure of performance that has the strongest link to the creation of wealth for the owners of both public and private companies. They answer the puzzle of why growth in earnings is not correlated with shareholder returns and explain the under- and over-investment traps. And they explain how clear communications to investors and managers alike improve value. The bottom line is that share prices go up when companies exceed expectations -- short-term and long-term -- of income statement and balance sheet performance and daily operating value drivers. Gain a complete understanding of EBM and discover how to do this, and much more, while staying competitive in an unforgiving business environment.

Download or read book Shareholder Value A Business Experience written by RoyE. Johnson and published by Elsevier. This book was released on 2001-10-23 with total page 483 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder Value presents a powerful and useful toolkit of market-based perspectives, analytic approaches, valuation techniques, and specific financial metrics for use in everyday business life. The author helps a broad spectrum of professionals understand the salient points and real world implications of a 'value management' movement which has taken hold in many corporations in the United States and around the world. This movement is being supported by some of the major institutional investors who influence financial markets. The main goal of 'Shareholder Value' is to help working professionals grasp the concept of value 'creators' and 'destroyers', along with the implications. He also provides tools to measure the success (or failure) of major strategic and operational initiatives and enables corporate managers to understand how shareholder value is created, and then directs behaviour toward 'value-based' planning and action. Although mainly aimed at the professional market, 'Shareholder Value' will also be of use to students of business and finance as it is intended to provide a comprehensive foundation for important elements of business strategy and acquisition valuation, corporate financial analysis, capital investments, corporate financing and economic value based metrics.AUTHOR'S REVIEW:When developing this book, I strived to achieve the following: Provide the finance professional and student of finance with a comprehensive template of shareholder value concepts and techniques - geared toward use in a corporate setting Give the non-financial professional an understanding of the underpinnings and behavioural aspects of economic value management Outline and provide details of an effective process for implementing a value-based financial performance system within a corporation ...And, combine learning with enjoyable reading by presenting technical material through a story. The "story" and "characters" are unique features of Shareholder Value - A Business Experience. The reader can get an appreciation of the environment surrounding value-based management, along with challenges that arise when transitioning from traditional "accounting" performance (where earnings and earnings per share reign supreme) to "economic" performance (where cash flow and return on investment are emphasized). Characters occupying operating and staff roles have been created to represent people that those working inside companies (large, medium and small) may encounter and, also, to invoke some humour. Insights into how to function in different corporate roles can be gained by following the characters through the story. Presents a combination of analysis and case study in which a strong technical treatment is blended with a fictional case study to offer clarity and explanation A practical and effective implementation process for a comprehensive financial performance system Offers a perspective of the role of different corporate and business unit functions in the implementation of value-based financial performance within a company

Download or read book Value Based Management written by John D. Martin and published by Oxford University Press, USA. This book was released on 2000 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: The corporate world's comeback to shareholder revolt, value based management refers to tools that financial managers can use to plan, monitor, and control a firm's operations in ways that enhance shareholder value. This timely book provides the first objective, field-tested synthesis of the most popular models in use today.

Download or read book Performance Measures of Shareholders Wealth written by Perways Alam and published by . This book was released on 2013 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Value Added (EVA) is a value based performance measure that gives importance on value creation by the management for the owners. Profit maximization as a concept is age-old, wealth maximization is matured and value maximization is today's wisdom. Stern Stewart's EVA raises storm in corporate world and gives a new way to think about rewarding management.Usability of EVA largely depends on the quality of accounting information system, as traditional information system will not provide sufficient information to compute true EVA. Thus, EVA is required to be tailored in line with accounting system, management philosophy and the degree of demand of such a system. In this paper, an earnest effort has been made to explain theoretical foundation of EVA with its origination, definition, ways to make it tailored, adjustments required, scope and some other related issues. The methodology used is a type of theoretical mining of logics resulting a step-by-step process required for EVA implementation. As corporate house plans to move from traditional to value based performance measures, EVA would yield good result and the paper may become helpful to them to comprehend the methodology.

Download or read book Critical Evaluation of the Discounted Cash Flow Method as a Value Based Performance Measurement Concept written by Jens Jannasch and published by GRIN Verlag. This book was released on 2004-03-15 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2003 in the subject Business economics - Controlling, grade: 1,3 (A), European University Viadrina Frankfurt (Oder) (Economics), course: Seminar: Budgeting and Performance Measurement, language: English, abstract: This paper will evaluate the Discounted-Cash-Flow-Method (DCF) as a certain value based performance measurement system (VBPMS). Therefore criteria of evaluating performance measurement systems (PMS) in generally will be created (Chapter 2). This strategy will guarantee the fundamental comparability of the derived features of the DCF with these of other PMS (including non-VBPMS, too). Chapter 3 will emphasize a fundamental feature of VBPMS, the shareholder orientation. After a detailed investigation of the DCF in chapter 4, its criteria will be evaluated in chapter 5. Finally a quintessence closes this paper (chapter 6). 2 Criteria for evaluating performance measurement systems In this chapter criteria of value based performance measurement systems will be developed. Therefore the sense of performance in connection with enterprises will be explained, at first. Finally, the term “performance measurement system” (PMS) will be defined in order to point out there criteria. 2.1 The performance of an enterprise Performance of an enterprise stands for its achievement, its power or its output 1 . To describe this term exactly, it is important to get an impression of the objectives of an enterprise (see Figure 7.1).The objectives of an enterprise are derived from its mission 2 . The mission of a company stresses its basic function in society. Qualitative aims, called goals, are derived from the mission. If they are expressed in a way that can be measured, they are called objectives. Shareholder wealth maximisation is the traditional objective of firms 3 . In general, “any group or individual who can affect or is affected by the achievement of the organization’s objectives” 4 (Stakeholder) can influence its mission and therefore its objectives. And some of them do so, as one can realise for example by investigating the success of the Balanced Score Card 5 as a performance measurement instrument that emphasises the objectives of several stakeholders 6 . Obviously, not every Stakeholder can by considered. Only the interests of a few key-stakeholders will be regarded by the target system of a firm. Shareholders are one of the considered key-stakeholders because of their influence on the process of creating the mission (consider the rights of co determination of the general business meeting and the supervisory board 7 at share companies; the influence of the shareholders on partnerships is trivial).

Download or read book Shareholders Value Analysis written by Katepogu Kumar and published by . This book was released on 2017 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understanding the value analysis and value creation of a company is essential for every financial manager in different situations. The value determination is carried out in various situations which may give positive or negatives results, resulting in serious jolts to the shareholders as well as to the goodwill of the company. Therefore, examining the shareholder value analysis is required to understand financial performance and it is critical to know whether modern techniques are supportive in creating value to the shareholders or not. This paper study the value analysis through modern techniques such as Economic Value Added (EVA), Market Value Added (MVA) and Stock Market Returns (StMr) of select twenty cement companies in India. This study evaluates the performance of the selected companies in terms of economic profit and market value and also tries to find the important metric among selected variables for creating shareholder wealth. In this study, twenty companies have been selected based on their market capital in Indian cement industry during the decade of 2005-06 to 2014-15. The study uses statistical tools for selecting the best metric among the variables through Mean, Coefficient and Multiple Regression with Stepwise method with the help of SPSS.

Download or read book Measuring Shareholder s Value Addition Evidences From Indian Public Sector Banks written by Dr. R. K Boudhe and published by Lulu.com. This book was released on with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: