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 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 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 Corporate Responsibility written by Paul A Argenti and published by SAGE Publications. This book was released on 2015-07-01 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This is the cutting-edge textbook on a managerial approach to corporate responsibility. Students and executives will benefit a great deal by studying the cases and best practices that are here. It’s a terrific book." —Ed Freeman, Elis and Signe Olsson Professor of Business Administration, Darden School of Business, University of Virginia Corporate Responsibility offers a concise and comprehensive introduction to the functional area of corporate responsibility. Readers will learn how corporate responsibility is good for business and how leaders balance their organization’s needs with responsibilities to key constituencies in society. Author Paul A. Argenti engages students with new and compelling cases by focusing on the social, reputational, or environmental consequences of corporate activities. Students will learn how to make difficult choices, promote responsible behavior within their organizations, and understand the role personal values play in developing effective leadership skills.

Download or read book Focus on Value written by James L. Grant and published by John Wiley & Sons. This book was released on 2001-10-25 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for Focus on Value "Focus on Value-with its theoretical and practical focus on economic profit fundamentals-is a modern day 'Graham and Dodd' primer on company and equity securities analysis."-Robert S. Hamada, Edward Eagle Brown Distinguished Service Professor of Finance, The University of Chicago Graduate School of Business "Now that investors have abandoned momentum and are migrating back to fundamental investing, the market has become a more rational place. This book is a manual for serious investors who believe that identifying growing corporate earning power is the foundation of value creation. Those following its precepts should minimize risk and be rewarded over the long term."-Byron R. Wien, Chief U.S. Investment Strategist, Morgan Stanley Dean Witter & Co. "Economic profit is one of the most useful managerial tools as well as a key to understanding the valuation of companies. Focus on Value is an outstanding piece of work. It captures the full spectrum of the 'Metric Wars' without ever confusing the reader. The serious student of economic profit will be richly rewarded by reading this excellent book from cover to cover."-Mario A. Corti, Chairman and Chief Executive Officer, Swissair Group, Zurich "Messrs. Grant and Abate have provided an analytical tool for corporate executives and investment managers which takes the concepts of economic profit and value maximization to the next level."-Suresh Thadhani, Chief Financial Officer and Executive Vice President, Alcan, Inc. "This book makes a real contribution to the most critical element in helping companies implement efficient capital resource allocation by highlighting the direct linkage between economic profit and stock price."-Jack Warner, Chairman, Kerry Inc. "The authors have put together an excellent piece of work and finally provide readers seriously interested in applying economic profit with a practical, market-oriented approach to integrate the basic building blocks of economic profit with valuation and market expectations."-David King, Director of Research, North America, PricewaterhouseCoopers, Corporate Value Consulting "In an era of following the herd toward indexation and price momentum, it is refreshing to see thinking out of the box and substantiating the tenets of an investment process that equates value with real investment opportunity."-Eric Colson, Senior Vice President, Callan Associates www.wileyfinance.com

Download or read book The Executive Guide to Boosting Cash Flow and Shareholder Value written by V. Rory Jones and published by John Wiley & Sons. This book was released on 2008-05-16 with total page 275 pages. Available in PDF, EPUB and Kindle. Book excerpt: As a business leader, you’re constantly looking for ways to maximize shareholder value—as quickly as possible. The Executive Guide to Boosting Cash Flow and Shareholder Value outlines a practical, effective, and innovative framework for achieving this goal, using established management tools to find and exploit high-value Profit Pools. With this book as your guide, you’ll quickly discover how to unlock large untapped sources of cash flow, and achieve the mandate that comes with modern business leadership.

Download or read book The End Of Shareholder Value written by Allan A. Kennedy and published by Basic Books. This book was released on 2008-01-04 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: In The End of Shareholder Value , Allan Kennedy shines the spotlight on a new revolution in business-as customers, employees, political and social leaders, and governing boards begin to challenge the cozy relationship between executives and investors that has crippled companies in the name of maximizing shareholder value. Analyzing both historical and current material, he explores the colorful history of corporations since the turn of the century, evolving from engines of innovation to machines driven by short-term financial gains. From GE to the hottest new Web-based start-up, those companies that subscribe to the shareholder value ethic cannot be sustained and will, inevitably, be replaced by those who figure out how to create and share wealth with all their important constituencies. Provocative and wide-ranging, The End of Shareholder Value showcases progressive experiments in the public and private sectors, outlines new roles and responsibilities for all participants, and challenges everyone to rethink the purpose of business in the new millennium.

Download or read book Wealth Creation in the World s Largest Mergers and Acquisitions written by B. Rajesh Kumar and published by Springer. This book was released on 2018-11-29 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book highlights research-based case studies in order to analyze the wealth created in the world’s largest mergers and acquisitions (M&A). This book encourages cross fertilization in theory building and applied research by examining the links between M&A and wealth creation. Each chapter covers a specific case and offers a focused clinical examination of the entire lifecycle of M&A for each mega deal, exploring all aspects of the process. The success of M&A are analyzed through two main research approaches: event studies and financial performance analyses. The event studies examine the abnormal returns to the shareholders in the period surrounding the merger announcement. The financial performance studies examine the reported financial results of acquirers before and after the acquisition to see whether financial performance has improved after merger. The relation between method of payment, premium paid and stock returns are examined. The chapters also discuss synergies of the deal-cost and revenue synergies. Mergers and acquisitions represent a major force in modern financial and economic environment. Whether in times of boom or bust, M&As have emerged as a compelling strategy for growth. The biggest companies of modern day have all taken form through a series of restructuring activities like multiple mergers. Acquisitions continue to remain as the quickest route companies take to operate in new markets and to add new capabilities and resources. The cases covered in this book highlights high profile M&As and focuses on the wealth creation for shareholders of acquirer and target firms as a financial assessment of the merger’s success. The book should be useful for finance professionals, corporate planners, strategists, and managers.

Download or read book Management written by Keuning Doede and published by Routledge. This book was released on 2013-12-19 with total page 620 pages. Available in PDF, EPUB and Kindle. Book excerpt: Management: A European Perspective adopts a step-by-step approach based on the key managerial skills – planning, organization, implementation, supervision and control – to provide a practical introduction to the field. Looking at some leading international companies, Keuning draws on various managerial and organizational concepts, including industrial democracy, corporate governance, ethics, culture and gender, ICT related changes in industries, e-business, risk management and network organization. Among the special features designed to enhance the learning process are: Detailed case studies demonstrating the practical implications of the concepts discussed References in the form of examples and brief studies (with a European or international focus) Numerous discussion questions relating to each chapter's theory Material from European newspapers and magazines to reinforce the book's practical orientation This book is an ideal introduction for students starting out their business program.

Download or read book Strategic Leadership for Business Value Creation written by Don Argus and published by Springer Nature. This book was released on 2021-01-13 with total page 504 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on leadership and strategy, corporate governance, operational excellence, and corporate social responsibility. In doing so, it offers both conceptual perspectives and case studies on these topics that are targeted at business executives who want to develop and mature towards being successful value creators in their leadership roles. Authored by the former CEO of National Australia Bank (NAB), Don Argus, and business school professor Danny Samson, the book provides insights on the strategic leadership factors that make a significant and positive difference when they are executed effectively and, in contrast, what happens when ineffective leadership/ strategy are deployed. It proposes and illustrates core leadership axioms, and also delves into sustainable development as an element of strategy. The authors do this by developing and illustrating core concepts that relate to the two major case study companies of NAB and BHP. Readers will be particularly interested in the core elements of leadership and strategy, and the grounded reality of how they operated in the case studies. The authors bring insiders’ and leaders’ perspectives to these topics, including tables that document shareholder value creation, and the logic behind strategic decisions, as well as key organisational leadership and strategic decision processes.

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 Value Creation for Owners and Directors written by Massimo Massa and published by Springer Nature. This book was released on 2023-05-10 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt: ​This book deals with a much understudied and poorly understood aspect of business: the role of owners and boards in value creation. While there is abundant guidance on value creation for publicly listed firms and their managers, the role played by owners, and their corporate directors, in value creation and governance has been overlooked. This book aims to fill that gap. • The first part deals with the mission, and the values and rules pertaining to the governance of the business. These structural elements are fundamental for owners to get right as they pave the way to value creation, or its opposite. They refer to “WHAT” owners have to do. Another element is the formation of the three boards that govern owner-led firms: the owners board, the board of directors, and the management board. • The second part addresses the relational elements that owners must master to effectively manage the social and emotional dynamics in their enterprise. It deals with the “HOW” of ownership, namely the leadership process that lies at the heart of board work. This process ensures alignment across the three boards and also with stakeholders that is vital to realizing owners’ value creating aims. • Thirdly, the book explores the histories, defining experiences, and talents that define owners and shape their enterprise. It concerns the “WHOM,” namely the identities of owners. It explores the diversity of ownership styles and identifies the critical personal transitions owners must make in their leadership quest. This book offers a practical guide for business aiming for value creation. It also should be of interest to directors and executives of all firms with identifiable ownership, such as entrepreneurial, family, state-owned and private equity firms.

Download or read book Business World written by and published by . This book was released on 2002 with total page 1432 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Caterpillar Way Lessons in Leadership Growth and Shareholder Value written by Craig Bouchard and published by McGraw Hill Professional. This book was released on 2014 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a behind-the-scenes look at Caterpillar's rise to global dominance in the construction equipment manufacturing industry, revealing the series of risky business decisions made by the company's management that launched its success.

Download or read book Strategic Value Management written by Juan Pablo Stegmann and published by John Wiley & Sons. This book was released on 2009-09-18 with total page 418 pages. Available in PDF, EPUB and Kindle. Book excerpt: Innovative strategic management solutions for today's market Strategic Value Management addresses common problems among business managers and other professionals involved in thinking about developing and managing organizations. In it, author Juan Pablo Stegmann integrates all strategic management and business strategy into an innovative standard that introduces key metrics to strategic management and stock value creation. He argues that most complex business issues can be reduced to the three dimensions of stock value creation-profits, sales growth, and capital-that are linked to three critical strategic management decisions-competition, innovation, and resources. His new approach indicates that every strategy has a clear dollar metric, which can measure its consequences of the strategies in terms of stock value. Competitive and growth strategies are analyzed along with economic, financial, dynamic, and contingent approaches Includes a companion CD-ROM, which contains Stegmann's proven model for strategic management and stock value creation Ethical consequences of strategic decisions are introduced-showing how ethics are linked to long-term stock value creation Explains the roots of the current financial crisis by examining the link between the financial world and strategic management, and proposes possible solutions For any looking to enhance their understanding of this discipline, Strategic Value Management offers a new conceptual model for thinking about business strategy and its link to stock value creation.

Download or read book Gower Handbook of Supply Chain Management written by John Gattorna and published by Taylor & Francis. This book was released on 2017-03-02 with total page 711 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ability to build and also maintain a world class logistics and distribution network is an essential ingredient in the success of the world's leading businesses, but keeping pace with changes in your sector and in others is hard to do. With the Gower Handbook of Supply Chain Management you will need to look no further. Written by a team of leading consultants with contributions from leading academic experts, this book will help you to keep pace with the latest global developments in supply chain management and logistics, and plan for the future. This book has over thirty chapters with detailed accounts of key topics and the latest developments, from e-collaboration and CRM integration, to reverse logistics and strategic sourcing, and includes case studies from Asia, Europe and North America. It looks at all aspects of operational excellence in logistics and supply chain management. The Gower Handbook of Supply Chain Management will help managers to benchmark their operations against the best-of-breed supply chains across the world. It provides a unique single source of expert opinion and experience.

Download or read book Lights Out written by Thomas Gryta and published by Houghton Mifflin. This book was released on 2020 with total page 371 pages. Available in PDF, EPUB and Kindle. Book excerpt: How could General Electric--perhaps America's most iconic corporation--suffer such a swift and sudden fall from grace? This is the definitive history of General Electric's epic decline, as told by the two Wall Street Journal reporters who covered its fall. Since its founding in 1892, GE has been more than just a corporation. For generations, it was job security, a solidly safe investment, and an elite business education for top managers. GE electrified America, powering everything from lightbulbs to turbines, and became fully integrated into the American societal mindset as few companies ever had. And after two decades of leadership under legendary CEO Jack Welch, GE entered the twenty-first century as America's most valuable corporation. Yet, fewer than two decades later, the GE of old was gone. ​Lights Out examines how Welch's handpicked successor, Jeff Immelt, tried to fix flaws in Welch's profit machine, while stumbling headlong into mistakes of his own. In the end, GE's traditional win-at-all-costs driven culture seemed to lose its direction, which ultimately caused the company's decline on both a personal and organizational scale. Lights Out details how one of America's all-time great companies has been reduced to a cautionary tale for our times.