Download or read book Shareholder Value Creators and Shareholder Value Destroyers in USA written by Pablo Fernandez and published by . This book was released on 2002 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we quantify shareholder value creation for 274 American companies. We provide the created shareholder value for each and every company for years 1998, 1999, 2000 as well as for 1993-2000. The market value of the 274 companies was 9,680 billion dollars.We define created shareholder value and provide the ranking of created shareholder value for the 274 companies. In 2000 Phillip Morris was the leading shareholder value creator and, on the other end of the spectrum, Microsoft was the top shareholder value destroyer.We also calculate the cumulative created shareholder value of selected American companies during the three-year period 1998-2000 and during the eight-year period 1993-2000. General Electric was the first company in both, created shareholder value and equity market value in 2000.We claim that EVA does not properly measure Wealth Creation. We have compared EVA calculated by Stern Stewart and Co with created shareholder value of 269 companies. The correlation of EVA with created shareholder value was only 17.66%. 60 companies had negative EVA and positive created shareholder value. 64 companies had positive EVA and negative created shareholder value. On average, the difference of shareholder value creation minus EVA was -434% of EVA. The absolute value of the difference of shareholder value creation minus EVA was 8972% of EVA. With this evidence, we conclude that EVA does not properly measure Wealth Creation.

Download or read book Shareholder Value Creators and Shareholder Value Destroyers in USA written by Pablo Fernandez and published by . This book was released on 2002 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we quantify shareholder value creation for 276 American companies. We provide the created shareholder value for each and every company for years 1998, 1999, 2000 and 2001. The market value of the 276 companies was 8,716 billion dollars in 2001 and 9,729 billion dollars in 2000. We define created shareholder value and provide the ranking of created shareholder value for the 276 companies. In 2001 Microsoft was the leading shareholder value creator and, on the other end of the spectrum, Cisco was the top shareholder value destroyer. We also calculate the cumulative created shareholder value of selected American companies during the four-year period 1998-2001. Wal-Mart Stores was the first company in created shareholder value companies during the four-year period 1998-2001.We also claim that EVA does not properly measure Wealth Creation. We have compared EVA calculated by Stern Stewart and Co with created shareholder value of 269 companies. The correlation of EVA with created shareholder value was only 17.66%. 60 companies had negative EVA and positive created shareholder value. 64 companies had positive EVA and negative created shareholder value. On average, the difference of shareholder value creation minus EVA was -434% of EVA. The absolute value of the difference of shareholder value creation minus EVA was 8972% of EVA. With this evidence, we conclude that EVA does not properly measure Wealth Creation.

Download or read book Shareholder Value Creators and Shareholder Value Destroyers in USA Year 2002 written by Pablo Fernandez and published by . This book was released on 2003 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: 2002 was a bad year: The shareholder value destruction of the companies in the Samp;P 500 was $3.3 trillion. In 2002 only 16% of the companies created value (80 companies created value and 420 companies destroyed value). The percentage of value creators was 35%, 54%, 47% and 53% for 2001, 2000, 1999 and 1998. The market value of the 500 companies was $8.1 trillion in 2002 and $10.4 trillion in 2001. The top shareholder value creators in 2002 were Boston Scientific ($6.5 billion), Bank of America ($6.4 billion), Wachovia ($4.7 billion), and Procter ($3.3 billion). The top shareholder value destroyers in 2002 were General Electric (-$185 billion), Intel (-$125 billion), Microsoft (-$119 billion) and AOL Time Warner (-$101 billion). We define created shareholder value and provide the ranking of created shareholder value for the 500 companies. We also calculate the created shareholder value of the 500 companies during the five-year period 1998-2002. Wal-Mart Stores was the top shareholder value creator ad Coca Cola the top shareholder value destroyer during the five-year period.We also provide the shareholder return of the 500 companies. Only 148 companies (out of the 500) had positive return on 2002, been the highest Providian Financial (82.8%). Dynegy had the lowest return (95.3%).

Download or read book Shareholder Value Creators and Destroyers in the Dow Jones written by Pablo Fernandez and published by . This book was released on 2015 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: During 2008, the 30 companies included in the Dow Jones destroyed $1.6 trillion for their shareholders. Only 2 companies (Wal Mart and McDonalds) created value. The top shareholder value destroyers were General Electric ($233 billion) and Microsoft ($178 billion). The market value of the 30 companies was $2.9 trillion in 2008 and $4.4 trillion in 2007.The price of the shares of each company had a big dispersion: on average, the maximum price of the year 2008 was 2.6 times the minimum price. 2008 had 11 of the 20 days with lowest returns in the period 1963-2008, and 8 of the 20 days with highest returns in the same 45-year period. The average return of 2008 was -32.3% (6 companies had returns below -50% and 20 had returns below -20%). However, the investors that bought shares in the years 1987-1998 and 2001-2002 had positive returns on December 2008.

Download or read book Shareholder Value Creators and Shareholder Value Destroyers in Europe Year 2002 written by Pablo Fernandez and published by . This book was released on 2006 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: 2002 was a bad year for the shareholders of the companies in the Euro Stoxx 50: the shareholder value destruction of the companies in the Euro Stoxx 50 was Euro 958,968 million. In 2002 only Eni created value (Euro 3,374 million). The remaining 49 companies destroyed value and had negative returns. Alcatel had the lowest shareholder return in 2002 (-77.9%). Shareholder value destruction in the 3-year period 2000-2002 Euro was 1.9 trillion. The market value of the 50 companies was Euro 1.42 trillion in 2002, and Euro 2.24 trillion in 2001, and Euro 2.75 trillion in 2001. We also calculate the created shareholder value of the 50 companies during the six-year period 1997-2002. Nokia was the top shareholder value creator and Allianz the top shareholder value destroyer during the six-year period. We find a very weak relationship between return and size. A portfolio long in the companies that entered the index and short in the companies that abandoned the index had on average a 10% return in the 16 days prior to the index recomposition and a -6% return in the 12 days after the index recomposition. In 2002, the Euro Stoxx 50 was much more volatile than the Samp;P 500 or the Dow Jones.

Download or read book Shareholder Value Creators in the S P 500 written by Pablo Fernandez and published by . This book was released on 2019 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the period 1991-2010, the S&P 500 destroyed value for the shareholders ($4.5 trillion). In 1991-1999 it created value ($5.1 trillion), but in 2000-2010 it destroyed $9.6 trillion. The market value of the S&P 500 was $2.8 trillion in 1991 and $11.4 trillion in 2010.We also calculate the created shareholder value of the 500 companies during the 18-year period 1993-2010. The top shareholder value creators in that period have been Apple ($212bn), Exxon Mobil (86), IBM (78), Altria Group (70) and Chevron (67). The top shareholder value destroyers in that period have been American Intl Group ($-217), Pfizer (-188), General Electric (-183), Bank of America (-170), Citigroup (-169) and Time Warner (-130). 41% of the companies included in the S&P 500 in 2004 or 2010 created value in 1993-2010 for their shareholders, while 59% destroyed value. We define created shareholder value and provide the created shareholder value of the 633 companies that were in the S&P 500 in December 2004 or in December 2010.

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 Valuation Methods and Shareholder Value Creation written by Pablo Fernandez and published by Academic Press. This book was released on 2002-08-30 with total page 662 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text provides a catalogue of valuation tools, together with guidance on analyzing and valuing a business. The author breaks down the topic to provide advice for any business, no matter how complex. He presents eight different methods of firm valuation and discusses the benefits and limitations of each method, supporting this information with examples from international markets.

Download or read book Shareholder Value Creators in the S P 500 written by Pablo Fernandez and published by . This book was released on 2006 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: During 2004, 64% of the companies included in the Samp;P 500 created value, while in 2003 87% of these companies did it. The market value of the 500 companies was $11.2 trillion in 2004 and $10.1 trillion in 2003. The top shareholder value creators in 2004 were Exxon, General Electric, Ebay, Johnson amp; Johnson and Qualcomm. We define created shareholder value and provide the ranking of created shareholder value for the 500 companies. We also calculate the created shareholder value of the 500 companies during the twelve-year period 1993-2004. General Electric was the top shareholder value creator and ATamp;T was the top shareholder value destroyer during the twelve-year period.On average, the small market capitalization companies of the Samp;P were more profitable. The volatility of the Samp;P fell since 1998 to 2004, but the volatility of his components increased on average.

Download or read book Shareholder Value Creators in the S P 500 written by Pablo Fernandez and published by . This book was released on 2006 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: During 2003, 87% of the companies included in the Samp;P 500 created value, while in 2002 just 17% of these companies did it. The market value of the 500 companies was $10.1 trillion in 2003 and $7.9 trillion in 2002. The top shareholder value creators in 2003 were Intel, Cisco, Citigroup, General Electric and Exxon. We define created shareholder value and provide the ranking of created shareholder value for the 500 companies. We also calculate the created shareholder value of the 500 companies during the eleven-year period 1993-2003. General Electric was the top shareholder value creator and ATamp;T was the top shareholder value destroyer during the eleven-year period. On average, the small market capitalization companies of the Samp;P were more profitable. The volatility of the Samp;P fell since 1998 to 2003, but the volatility of his components increased on average.

Download or read book Creating Shareholder Value written by Alfred Rappaport and published by . This book was released on 1986 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Begins with dramatic proof of the shortcomings of accounting numbers as earnings per share, return on investment, and return on equity, and explains to develop value-creating business strategies and how to ...

Download or read book Redefining Shareholder Value written by Mariana Schmid and published by Business Expert Press. This book was released on 2015-07-22 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: Measuring shareholder value has become crucial in the current economic environment, especially following the consistent pressure from institutional shareholders on companies to create shareholder value in an adverse economic environment. Maximizing the company’s value will make the company less appealing to hostile takeovers. Takeovers are a capital market mechanism designed to control the conflicts of interest between shareholders and managers of the company. In this study, the authors examine the best methods used in measuring shareholder value, and explore the process of shareholder value creation in the years prior and following the creeping takeover of Ivanhoe Mines by Rio Tinto Plc. The study is based on data and ratio analytics from ThomsonONE (Reuters), information that is publicly available through press releases, analyst coverage, and financial news. It also includes an in-depth analysis of the creeping takeover of Ivanhoe Mines by Rio Tinto Plc.

Download or read book Predatory Value Extraction written by William Lazonick and published by Oxford University Press. This book was released on 2019-12-04 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Predatory Value Extraction explains how an ideology of corporate resource allocation known as 'maximizing shareholder value' (MSV) that emerged in the 1980s came to dominate strategic thinking in business schools and corporate boardrooms in the United States. Undermining the social foundations of sustainable prosperity, it resulted in employment instability, income inequity, and slow productivity growth. In explaining what happened to sustainable prosperity, William Lazonick and Jang-Sup Shin focus on the growing imbalance between value creation and value extraction in the U.S. economy, and the corporate-governance institutions that determine this balance in the nation's major business corporations. The imbalance has become so extreme that predatory value extraction is now a central economic activity, to the point at which the U.S. economy as a whole can be aptly described as a value-extracting economy. Balancing the contributions of economic actors to value creation with their power to extract value provides the foundation for stable and equitable economic growth. When certain economic actors are able to assert their power to extract far more value than they contribute to the value-creation process, an imbalance occurs which, when extreme, leads to dire economic, political, and social consequences. This book not only explores these consequences, but also sets out an agenda for restoring sustainable prosperity.

Download or read book 50 Largest Companies written by Julio Aznarez and published by . This book was released on 2014 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: We calculate the shareholder value creation for the 50 biggest companies in terms of market capitalization for Latin America and for 2005 and for the 39 biggest companies in terms of market capitalization for the period 2000-2005.2005 was a year in which 46 out of the 50 biggest companies in Latin America created shareholder value: US$ 156.606 million. The top three companies that created more value were Ameacute;rica Moacute;vil (US$ 16.852 million, MX), Bradesco (US$ 14.957 million, BR) and Petrobras (US$ 14.504 million), while the three companies that destroyed more value were Souza Cruz (US$ -585 million, BR), Antarchile (US$ -281 million, CH) and Cmpc (US$ -98 million, CH). The market value of the 50 companies reported was US$ 644.286 million in 2005. The created shareholder value of a subsample of 39 companies for the period 2000-2005 shows that Petrobras (US$ 67.253 million, BR) was the top shareholder value creator and Embraer (US$ -1.265 million, BR) the top shareholder value destroyer for the period.

Download or read book Shareholder Value Creation written by Pablo Fernandez and published by . This book was released on 2019 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we will define and analyze shareholder value creation. To help us understand this concept better, we will use the example of a listed company, General Electric, between 1991 and 2012.lt;brgt;lt;brgt;To obtain the created shareholder value, we must first define the increase of equity market value, the shareholder value added, the shareholder return, and the required return to equity. lt;brgt;lt;brgt;A company creates value for the shareholders when the shareholder return exceeds the required return to equity. In other words, a company creates value in one year when it outperforms expectations.lt;brgt;lt;brgt;The created shareholder value is quantified as follows:lt;brgt;Created shareholder value = Equity market value x (Shareholder return - Ke)lt;brgt;lt;brgt;The created shareholder value can also be calculated as follows:lt;brgt;Created shareholder value = Shareholder value added - (Equity market value x Ke)lt;brgt;lt;brgt;We also calculate the created shareholder value of 142 American companies.

Download or read book Shareholder Value Creation of Microsoft and Ge written by Pablo Fernandez and published by . This book was released on 2015 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we will define and analyze shareholder value creation. To help us understand this concept better, we will use the example of two listed companies, General Electric and Microsoft, between 1992 and 2003. To obtain the created shareholder value, we must first define the increase of equity market value, the shareholder value added, the shareholder return, and the required return to equity.A company creates value for the shareholders when the shareholder return exceeds the required return to equity (Ke). In other words, a company creates value when it outperforms expectations.The created shareholder value can also be calculated as follows:Created shareholder value = Shareholder value added - (Equity market value x Ke)We also calculate the created shareholder value of 400 American companies during the eleven-year period 1992-2003.

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: