Download or read book Stakeholder Value Creation and Financial Performance of Selected JSE Firm written by Musa Bryan Sono and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Strategic Approach in Managing Shareholders Wealth for Companies Listed on the JSE Securities Exchange South Africa written by Johannes H. v. H. (Johannes Hendrik van Heerden) De Wet and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: For a number of years there has been a growing awareness of the importance of shareholder value for financial strategy and management. At the same time, there has been growing concern that the traditional accounting measures of performance have serious inherent limitations that may lead to poor financial decision-making. This study starts off by providing an overview of the main accounting earnings-based measures, as well as the most important criticisms leveled against them. The concepts of Economic Value Added (EVA) and Market Value Added (MVA), which are currently regarded as the most important indicators of shareholder value and financial performance, are examined, along with some research evidence supporting them (and other evidence opposing them). Various aspects of EVA and MVA are discussed, including different ways of calculating them, and their link to other financial concepts such as net present value (NPV) and operating and financial leverage. After a discussion of the main drivers of EVA, namely the Return on Invested Capital (ROIC), the weighted average cost of capital (WACC), the performance spread and the invested capital (IC), the financial strategy matrix is introduced. The financial strategy matrix has been used in this study to evaluate companies in terms of internal value creation (performance spreads) and cash flow management (sales growth compared to the sustainable growth rate). A selection of companies listed on the JSE was ranked according to their relative performance in terms of internal value creation (performance spreads) and the results of some individual companies and sectors were placed on the financial strategy matrix. The statistical tests done on the data have indicated that the sales growth minus the sustainable growth rate does not contribute significantly to shareholder value and an alternative variable was recommended. Further tests have revealed that significant correlation between MVA and EVA could only be found if the median results over a ten-year period were used. The correlation between MVA and the main drivers of EVA was found to be weak on a year-on-year basis. It is hoped that the results and perspectives gained from this study will be helpful to financial managers who aim to optimize their approach to shareholder value management.
Download or read book Empirical Analysis on Impact of Economic Value Added on Shareholder s Value written by Shrikant Panigrahi and published by . This book was released on 2015 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Background: Economic value added (EVA) is a concept developed Stern Stewart helps to identify true profitability of the organization due to consideration of cost of equity. Construction companies have been taken under consideration for this study. Objective: To provide an alternative measurement tool for the Malaysian construction companies that identifies true economic profit and enhance shareholder's value. Cross sectional secondary data are used of the selected companies for the period of 10 years from 2003 to 2012. Results: The result found significant influence of EVA on shareholder's value creation. It was also noticed from the trend analysis that from the 28 companies only 10 companies were having positive EVA whereas the remaining has destroying the shareholder value. The reason for negative EVA is high cost of equity. Conclusion: Thus in the proposed model it is confirmed that EVA as a value based performance tool dominates the shareholder value. Hence managers are suggested to pay more focus on the importance of EVA and its benefits for the shareholder's wealth creation and improve company performance.
Download or read book The Relationship Between Long term Value Creation Disclosure and the Performance of JSE Listed Companies written by Wisdom Francis and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Corporate Reporting written by Pauline Weetman and published by Routledge. This book was released on 2020-02-19 with total page 422 pages. Available in PDF, EPUB and Kindle. Book excerpt: This textbook provides a comprehensive overview of international corporate reporting which enhances students’ understanding of diversity and convergence in the field. The authors discuss the institutional and cultural context in which international corporate reporting has developed over the years as well as the global reach of IFRS Standards from the IASB throughout and beyond the European Union, into interest groups and emerging economies. Other key elements explored throughout the book include assurance through auditing and corporate governance, narrative reporting, strategic and corporate social responsibility, group accounting, current accounting issues and taxation in corporate reports. Indicative research examples show how the methods used in research papers may be understood and applied. Case studies outline short projects based on corporate cases, with related links to material on corporate websites. Helpful and reliable sources of information and data are identified through hyperlinks to accessible websites. End-of-chapter questions encourage discussion of the main issues. Throughout there is a focus on accountability and the information needs of stakeholders. This new edition of a classic text is fully revised and updated in order to remain essential reading for students of international accounting and corporate reporting globally. The book will be an invaluable resource for postgraduate taught programmes and final-year undergraduate courses in accounting, finance and business studies.
Download or read book Measuring Value Creation and Its Distribution Among Stakeholders of the Firm written by Marvin B. Lieberman and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present a general methodology that uses publicly available data to estimate the magnitude of economic value creation and its distribution among a firm's stakeholders. Based on productivity literature in economics, the methodology goes beyond the conventional focus on shareholders and allows the examination of value appropriation by other stakeholders of the firm including employees, customers and government. We illustrate the methodology using historical data on General Motors and Toyota.
Download or read book Economic Value Added written by Reeta Bharat Shah and published by . This book was released on 2015 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: With increased emphasis on shareholder value addition, there has been an ongoing debate on choosing the right measure of corporate financial performance. There is need for a single measure of financial performance that not only measures corporate financial performance but also works as a financial flexibility tool. The financial performance measure employed by the firm measures the value generated by the firm. This necessitates the firms to choose the right performance tool which can reflect the accurate value added by the firm. We study the role and implications of Economic Value Added as a financial performance measure and further discuss its applicability as a tool for introducing financial flexibility. Flexibility is assessed by measuring the impact of organization's competitiveness and performance. The findings reveal that EVA as a tool enables the corporate to differentiate between value-creating and value-destructing activities and helps managers in taking right decisions which enhances shareholder value. Thus, finally the research makes a case for managers to use EVA as a tool to provide additional information to investors. Interestingly, EVA can also be adapted as a corporate philosophy for motivating and educating employees.
Download or read book Value Creation and Corporate Governance written by Steen Thomsen and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder value maximization has been severely criticized in recent years, but it is not clear what, if anything, is to take its place. In this paper, we review three models of corporate value creation - shareholder value, stakeholder value, and company purpose achievement - and their implications for corporate governance. We first discuss shareholder value and how it is implemented through dispersed financial ownership, facilitation of takeovers, stock options and other mechanisms. Secondly, we discuss stakeholder value and its implementation through cooperatives, mutuals, employee representation and ESG indicators. Thirdly, we consider the more recent idea of a company purpose, which calls for responsible long-term ownership, management continuity and financial conservatism. We conclude that the purpose view may be the most promising alternative because it addresses weaknesses in the two other models by providing a clear social objective that is consistent with constrained profit maximization. However, we argue that agency problems and tensions with the broader interests of society are likely to persist regardless of value creation model.
Download or read book Value Creation and Appropriation of Firms written by Fatai A. Atanda and published by . This book was released on 2015 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The issue of corporate performance had been vigorously addressed in the literature using traditional accounting metrics. However, contemporary studies now focus on corporate sustainability in terms of value creation and how constituents of a firm are compensated for their efforts at generating the value. The current research challenge is therefore on how to appropriately define and measure firm value, bearing in mind several stakeholders that have diverse and often conflicting interests in a firm. This paper fills this gap by using stakeholder perspective to explain the concept of value creation and by providing theoretical framework and methodology for measuring the value created and appropriated by a firm. It is established that value creation can be measured using (1) the difference between output value and inputs value, (2) the sum of the economic rewards given to stakeholders and 3) the true cash flows generated by a firm. The paper concludes that since the traditional accounting metrics have some limitations and since investors do not value accounting earnings but cash that is truly generated from a firm' operations, a quantity that denotes value to diverse stakeholders of a firm should be used to measure firm value.
Download or read book Global Shareholder Stewardship written by Dionysia Katelouzou and published by Cambridge University Press. This book was released on 2022-05-12 with total page 723 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first in-depth comparative and empirical analysis of shareholder stewardship, revealing the previously unknown complexities of this global movement. It highlights the role of institutional investors and other shareholders, examining how they use their formal and informal power to influence companies. The book includes an in-depth chapter on every jurisdiction which has adopted a stewardship code and an analysis of stewardship in the world's two largest economies which have yet to adopt a code. Several comparative chapters draw on the rich body of jurisdiction-specific analyses, to analyze stewardship comparatively from multiple interdisciplinary perspectives. Ultimately, this book provides a cutting-edge and comprehensive understanding of shareholder stewardship which challenges existing theories and informs many of the most important debates in comparative corporate law and governance.
Download or read book Capitalism Corporations and the Social Contract written by Samuel F. Mansell and published by Cambridge University Press. This book was released on 2013-03-14 with total page 199 pages. Available in PDF, EPUB and Kindle. Book excerpt: Samuel Mansell critiques the principles of stakeholder theory, proposing instead a qualified version of Friedman's shareholder theory.
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 Complex Intelligent and Software Intensive Systems written by Leonard Barolli and published by Springer Nature. This book was released on 2022-06-16 with total page 609 pages. Available in PDF, EPUB and Kindle. Book excerpt: Software intensive systems are systems, which heavily interact with other systems, sensors, actuators, devices, other software systems, and users. More and more domains are involved with software intensive systems, e.g., automotive, telecommunication systems, embedded systems in general, industrial automation systems, and business applications. Moreover, the outcome of web services delivers a new platform for enabling software intensive systems. Complex systems research is focused on the overall understanding of systems rather than its components. Complex systems are very much characterized by the changing environments in which they act by their multiple internal and external interactions. They evolve and adapt through internal and external dynamic interactions. The development of intelligent systems and agents, which is each time more characterized by the use of ontologies and their logical foundations, builds a fruitful impulse for both software intensive systems and complex systems. Recent research in the field of intelligent systems, robotics, neuroscience, artificial intelligence, and cognitive sciences is a very important factor for the future development and innovation of software intensive and complex systems. The aim of the book “Complex, Intelligent and Software Intensive Systems” is to deliver a platform of scientific interaction between the three interwoven challenging areas of research and development of future ICT-enabled applications: software intensive systems, complex systems, and intelligent systems.
Download or read book Implementing Integrated Reporting written by Cristiana Bernardi and published by Springer Nature. This book was released on 2020-02-29 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sustainability, the environment, corporate accountability, social justice, integration – these are the buzzwords of our century. This book takes readers on a journey through the landscape of standard-setting giants and corporate reporting paradigms through the eyes of two companies that have taken very different paths toward integrated thinking. Both stories provide new insights into the transition to integrated reporting, as envisaged by the International Integrated Reporting Council (IIRC), and how integrated reporting is reshaping our views on transparency. However, the top-down approach adopted in studies of integrated reporting in practice has left many questions unanswered: Is it effective? How does it evolve into established practice? Is it just another management fad? This bottom-up critique answers all these questions and one more: Could integrated reporting become the corporate reporting norm? We shall see. Given its depth of coverage, the book appeals to IIRC academic community, participants in integrated reporting networks, and others interested in integrated reporting.
Download or read book Stakeholder Theory written by R. Edward Freeman and published by Cambridge University Press. This book was released on 2010-04-01 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1984, R. Edward Freeman published his landmark book, Strategic Management: A Stakeholder Approach, a work that set the agenda for what we now call stakeholder theory. In the intervening years, the literature on stakeholder theory has become vast and diverse. This book examines this body of research and assesses its relevance for our understanding of modern business. Beginning with a discussion of the origins and development of stakeholder theory, it shows how this corpus of theory has influenced a variety of different fields, including strategic management, finance, accounting, management, marketing, law, health care, public policy, and environment. It also features in-depth discussions of two important areas that stakeholder theory has helped to shape and define: business ethics and corporate social responsibility. The book concludes by arguing that we should re-frame capitalism in the terms of stakeholder theory so that we come to see business as creating value for stakeholders.
Download or read book Corporate Culture and Performance written by John P. Kotter and published by Simon and Schuster. This book was released on 2008-06-30 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: Going far beyond previous empirical work, John Kotter and James Heskett provide the first comprehensive critical analysis of how the "culture" of a corporation powerfully influences its economic performance, for better or for worse. Through painstaking research at such firms as Hewlett-Packard, Xerox, ICI, Nissan, and First Chicago, as well as a quantitative study of the relationship between culture and performance in more than 200 companies, the authors describe how shared values and unwritten rules can profoundly enhance economic success or, conversely, lead to failure to adapt to changing markets and environments. With penetrating insight, Kotter and Heskett trace the roots of both healthy and unhealthy cultures, demonstrating how easily the latter emerge, especially in firms which have experienced much past success. Challenging the widely held belief that "strong" corporate cultures create excellent business performance, Kotter and Heskett show that while many shared values and institutionalized practices can promote good performances in some instances, those cultures can also be characterized by arrogance, inward focus, and bureaucracy -- features that undermine an organization's ability to adapt to change. They also show that even "contextually or strategically appropriate" cultures -- ones that fit a firm's strategy and business context -- will not promote excellent performance over long periods of time unless they facilitate the adoption of strategies and practices that continuously respond to changing markets and new competitive environments. Fundamental to the process of reversing unhealthy cultures and making them more adaptive, the authors assert, is effective leadership. At the heart of this groundbreaking book, Kotter and Heskett describe how executives in ten corporations established new visions, aligned and motivated their managers to provide leadership to serve their customers, employees, and stockholders, and thus created more externally focused and responsive cultures.
Download or read book Integrated Reporting written by Cristiano Busco and published by Springer Science & Business Media. This book was released on 2013-11-27 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on Integrated Reporting as a contemporary social and managerial innovation where a number of initiatives, organizations and individuals began to converge in response to the need for a consistent, collaborative and internationally accepted approach to redesign corporate reporting. Integrated Reporting is a process that results in communication of the annual “integrated report” which describes value creation over time. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term. This book offers a fresh perspective with expert contributions focusing on both the theoretical underpinnings and the practical challenges for the future of corporate reporting.
