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Journal articles on the topic 'Shareholder value creation'

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Published: 4 June 2021

Last updated: 20 February 2023

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1

Lichtenstein, Scott, and Pat Dade. "The Shareholder Value Chain: Values, Vision and Shareholder Value Creation." Journal of General Management 33, no. 1 (September 2007): 15–31. http://dx.doi.org/10.1177/030630700703300102.

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Business now almost universally accepts that the primary management task is value creation. The impact of leaders’, directors' and executives' personal values in the value creation process has been largely ignored in the literature. This paper seeks to redress the current situation by proposing that the needs and values of leaders and executives drive the vision, goals and strategies to create shareholder value. Yet, while most directors and senior managers will be at ease with pushing the organisation farther and faster in the creation of new methods to create more shareholder value, this is creating dis-ease amongst other directors, executives and the organisations' operator who have different values. This disease potentially stymies leaders' and boards' ability to create more value for shareholders. By understanding the values dynamic and asking different questions, boards and leaders can motivate the culture to create more value. The objective of this paper is to build on previous executive values research by examining the impact of how the values of one executive value group translate into methods of creating shareholder value and proposing the linkage between leaders values and shareholder value. First, a theoretical background is provided. Next, the results of empirical research into executive values are briefly reviewed and combined with data and insights from proprietary market research to discuss how the needs and values of one executive value group impact on strategic leadership factors driving shareholder value creation methods. This is followed by proposing a conceptual framework illustrating the linkages between leaders' values and shareholder value creation with propositions. Conclusion and implications are drawn and finally limitations and areas for further research are provided.

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2

Gounder, Chitra Gunshekhar, and M. Venkateshwarlu. "Shareholder Value Creation: An Empirical Analysis of Indian Banking Sector." Accounting and Finance Research 6, no. 1 (February 14, 2017): 148. http://dx.doi.org/10.5430/afr.v6n1p148.

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This study investigates the importance of economic value added for the shareholders’ value maximization. Economic value added (EVA) is a value based performance measurement tool that helps to settle down the management decision regarding creation of shareholders value. Very few literatures are found regarding creation of shareholder values in banks. Sample of 40 Indian commercial listed Banks and panel data are used for the period of 2001 to 2015, the empirical findings for Public limited banks and overall Indian banks revealed that there is a positive and significant relationship between shareholder’s value maximization and EVA but in case of Private limited banks, DPS was found to have significant relationship with shareholder value. The Higher the value of EVA, higher shareholders value .The finding shows significant support for EVA and DPS, but it was found that EVA is not efficiently used for Analysis and decision making regarding creation of value. Thus it is suggested to focus on criteria of EVA for analyzing shareholder’s value of banks.

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3

Sharma, Dr Asha. "Shareholder Value Creation in Tata Consultancies Ltd." Paripex - Indian Journal Of Research 3, no. 4 (January 15, 2012): 26–28. http://dx.doi.org/10.15373/22501991/apr2014/7.

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4

Hall, John Henry. "Industry-specific determinants of shareholder value creation." Studies in Economics and Finance 33, no. 2 (June 6, 2016): 190–208. http://dx.doi.org/10.1108/sef-08-2014-0155.

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Purpose Prior studies on determinants of shareholder value creation have reported conflicting and sometimes confusing results. In this study, to obtain more refined and industry-specific results regarding variables determining shareholder value creation, an analysis was performed focusing on different categories of firms or industries. Design/methodology/approach Two dependent and 11 independent variables were applied to five different industries to obtain the best set of significant value drivers of shareholder value creation for a particular industry. Findings Market value added (MVA) is a better indicator of shareholder value created compared to a market adjusted return. Accounting-based variables (EPS, ROA and NOPAT) are superior to economic-based variables (EVA and ROCE) in explaining shareholder value creation, but results differ, depending on the dependent variable chosen as shareholder value creation measure. For each industry, there is a unique set of variables that determine shareholder value creation; the industrial goods industry has seven significant value drivers, namely, EPS, NOPAT, ROCE, the Spread, EVA, EBEI and REVA, whilst for the food and beverages industry, there were only two significant value drivers (EPS and ROA). Originality/value These findings imply that management, analysts and shareholders should, depending on the specific industry in which their firm operates, take into account a more specific set of variables when making their financial decisions, including compensation or reward structuring.

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5

Flesch, A. "Shareholder value creation using asset yield swap contracts." Acta Oeconomica 59, no. 3 (September 1, 2009): 261–88. http://dx.doi.org/10.1556/aoecon.59.2009.3.1.

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In this paper, I investigate the shareholder value creation potential of a particular combination of corporate risk and capital structure strategies for a non-financial company. I examine the size of shareholder added value when the company increases its financial leverage while keeping its credit rating constant by hedging its asset yield volatility. Ross (1996) shows that by reducing the asset yield volatility of the company, its debt capacity can permanently be increased, which can create 10–15% additional value for shareholders. With the help of my model, I develop an alternative approach to quantify this impact on shareholder value with better calibration characteristics. Uniquely in the technical financial literature, I derive the shareholder value creation potential from the mean-reversion parameters of the asset yield process. Also, I define the optimal structure of swap-basket needed for efficient hedging of industrial asset yield process, and analyse the sensitivity of shareholder added value to the term and transaction costs of applied swap contracts.

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6

Kumaran, Sunitha. "Shareholder Value Index for Saudi Banks." International Journal of Financial Research 8, no. 4 (September 14, 2017): 196. http://dx.doi.org/10.5430/ijfr.v8n4p196.

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This paper aims to examine the shareholder value efficiency and build a Shareholder Value Index for Saudi banks between 2010 and 2014. Shareholder value efficiency is measured using value based performance metrics and binary logistic regression model was adopted to develop the Shareholder Value Index for Saudi banks. The Shareholder Value Index developed provides the probability of a bank’s competence to create/erode shareholders' wealth. The study finds that Economic Value Added (EVA) is the value-based performance metric that comes closer than any other to capture the true Economic Profit and the market performance (Market Value Added) of banks. Positive EVA of most of the commercial banks denote that they are more Shareholder value efficient than Islamic banks. High Market Value Added (MVA) represents a highly positive outlook of the investors on the Saudi banks' performance. Value creation is significantly linked to high Net Operating Profit After Tax and a low cost of capital. The most significant observation is that not all banks with highest capital employed are the highest value creators. The Shareholder Value Index developed indicate that majority of Saudi banks demonstrate a higher probability of shareholder value creation. Few Islamic banks showed a less probability of wealth creation for the period of study and are predicted to improve the shareholder value creation ability through their aggressive strategy in the future.

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7

Mastilo, Zoran, Vladimir Zakić, and Goran Popović. "Value Creation Concept In Stakeholder And Shareholder Economies." Applied Economics and Finance 4, no. 2 (February 6, 2017): 155. http://dx.doi.org/10.11114/aef.v4i2.2200.

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In the financial theory it is common to make distinction between two types of corporate value creation concept: shareholder value and stakeholder value. In shareholder systems, also known as Anglo-American concept, institutional investors, who usually own small percentages of companies' shares, exert significant influence over managers. In major stakeholder systems, marked as Continental concept, influence is shared between large shareholders, employees, customers and suppliers. The aim of this paper is to analyze influence of globalization processes and economic crises on value creation theory and practice.

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8

Cuervo García, Álvaro, and Luisa Reyes-Recio. "The substitution effect between managerial control mechanisms and its effect on the creation of value in reference to firm diversification." Corporate Ownership and Control 5, no. 1 (2007): 382–96. http://dx.doi.org/10.22495/cocv5i1c4p6.

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This paper aims to investigate the relationships between two governance mechanisms such as active shareholder control and the board of directors, as well as their effect on the creation of value for the shareholder, using firm diversification strategy as the moderating variable. These relationships indicate the existence of a substitution effect between both governance mechanisms, with a more inactive board in firms with large shareholders. On the other hand, the analysis of governance mechanisms and firm diversification strategy indicate the positive effect of shareholder concentration on the creation of value for shareholders in non-diversified firms and, the positive effect of the board of administration on the creation of value for shareholders in diversified firms

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9

Dhani Laksana, Rio, and Viviana Mayasari. "The Impact of Market Value Added to Shareholder Value: Evidence from Indonesia Firms." SHS Web of Conferences 86 (2020): 01029. http://dx.doi.org/10.1051/shsconf/20208601029.

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Presently financial experts developed the new concept as a value-based measure of performance in the creation of shareholder value. Market value for shareholders are among the most important goals of firms and owners The purpose of this study is to obtain empirical evidence of Economic Value Added (EVA) affects shareholder value by the method of Market Value Added (MVA) The research using non-financial companies listed on the Stock Exchange from 2013-2017. The result is support that the Economic Value Added (EVA) positive effect on shareholder value or in other words, the higher EVA is the higher shareholder value. The larger the company greater shareholder value and Leverage negative effect on shareholder value as measured using the method of MVA.

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10

Zakic, Vladimir. "Creating values for stakeholders as a goal of a modern corporate enterprise." Zbornik Matice srpske za drustvene nauke, no. 144 (2013): 467–81. http://dx.doi.org/10.2298/zmsdn1344467z.

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The goal of this paper is to present a comparative analysis of two value creation concepts applied in most developed countries: Anglo-American concept of shareholder value creation and the Continental model of stakeholder value creation. In shareholder systems, also known as Anglo-American model, shareholders exert dominant influence. In major stakeholder systems, marked as Continental model, influence is shared between large shareholders, employees, customers and suppliers. The aim of this paper is to analyze the impact of globalization and economic crisis on the goals of corporate enterprises, which have largely led to convergence of two opposing value creation concepts.

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11

Kennedy, Eric L. "Firm Motivations for Shareholder Co-creation." Journal of Creating Value 5, no. 1 (February 5, 2019): 53–67. http://dx.doi.org/10.1177/2394964318814923.

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The present article, from corporate leader’s points of view, explores and provides a framework for the reasons a firm will engage and co-create with shareholders. Although the practice of firms engaging in value creation with shareholders takes place with regular occurrence, little is known about the motivations behind this co-creation. Gaining an understanding into this behaviour can benefit practitioners who wish to develop a value creation relationship with some of their shareholders. Therefore, reason for this undertaking is to develop a conceptual foundation to understand the relationships firms form with their shareholders, where co-creation of value is concerned. Five corporate leader interviews enlighten the research itinerary. The potential reasons for a firm to engage in the co-creation of organizational goals serve as broad themes by which the study is created, analysis is directed and arguments are formatted. The results of the informant interviews provide a cohesive foundation on which to further explore shareholder brand co-creation.

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12

Seed, Allen H. "WINNING STRATEGIES FOR SHAREHOLDER VALUE CREATION." Journal of Business Strategy 6, no. 2 (April 1985): 44–51. http://dx.doi.org/10.1108/eb039108.

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13

Radić, Nemanja. "Shareholder value creation in Japanese banking." Journal of Banking & Finance 52 (March 2015): 199–207. http://dx.doi.org/10.1016/j.jbankfin.2014.09.014.

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14

Hall, John H. "Toward Improved Use Of Value Creation Measures In Financial Decision-Making." Journal of Applied Business Research (JABR) 29, no. 4 (June 28, 2013): 1175. http://dx.doi.org/10.19030/jabr.v29i4.7924.

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In the last two decades,numerous studies have been conducted to find sources and explanations for valuecreation and the value drivers of share returns or shareholder value creationby firms. This study aimed to determinewhether more refined firm categorization and an increase in the number of variablesanalyzed would yield more robust information on value creation measures thatfinancial decision-makers can use. Fourdifferent categories of firms were compiled.For each category, 11 different internal performance measures wereregressed against two different external shareholder value creation measures. The empirical results show that differentvalue creation measures explain shareholder value creation best for differentcategories of firms. Economic-basedindicators provide higher information content than accounting-based indicatorsfor financial decision-making. Theinformation content of internal value drivers varied when different externalshareholder value indicators were used. Thisstudy provides financial decision-makers with a more specific indication of theuse of shareholder value creation measures for specific firm types.

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Maimako, Sebastine Seddi, and Kolawole Olugbenga Oladele. "Impact of Corporate Restructuring on Value Creation in the Nigerian Banking Industry." SDMIMD Journal of Management 3, no. 2 (September 1, 2012): 77. http://dx.doi.org/10.18311/sdmimd/2012/2744.

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This study aims at determining the impact of corporate restructuring on the creation of shareholder value in the Nigerian banking industry. Secondary data are collected in respect of all the 21 banks listed on the Nigerian Stock Exchange. The data are analysed using the Difference in Means (Descriptive Statistics) Method. The study establishes the fact that in the Nigerian banking industry, mergers, acquisitions and capital restructuring have significant impacts on value creation; but capital restructuring has the greatest positive impact on the creation of shareholder value. It is also found that most banks have to restructure as a result of problems like weaknesses in corporate governance, weak ownership structure, conflict of interest between management and shareholders, environmental problems, and internal problems. The findings of this study imply that banks involved in mergers may not be able to create or enhance value for their shareholders. It is recommended that industry regulators and practitioners seeking to create value for shareholders should, among other things, focus on capital restructuring and acquisition and strategies that favour growth, expansion and performance improvement.

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16

Hall, John Henry. "Value creation measures: an industry-based study." International Journal of Productivity and Performance Management 67, no. 2 (February 12, 2018): 426–44. http://dx.doi.org/10.1108/ijppm-08-2016-0178.

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Purpose The purpose of this paper is to identify the shareholder value creation measure best suited to express shareholder value creation for a particular industry. Design/methodology/approach The analysis was performed on 192 companies listed on the Johannesburg Stock Exchange, classified into nine different samples or industries. Five shareholder value creation measures were examined, namely market value added (MVA), a market-adjusted stock return, the market-to-book ratio, Tobin’s Q ratio, and the return on capital employed divided by the cost of equity. Findings An analysis of the nine categories of firms led to the identification of different measures that are suited to express value creation. Stock returns did not provide an appropriate value measure. Instead, depending on the specific industry, Tobin’s Q ratio, MVA, and the market-to-book ratio should be used to measure and express value creation. Practical implications For management, the value drivers identified for each industry present a clear indication of industry-specific variables upon which they can focus in operating activities to most efficiently increase shareholder value. Originality/value Unlike previous studies that use only one or two different shareholder value creation measures as dependent variables, this study uses five different value creation measures. Another contribution of this study is the compilation of a unique set of value drivers that explain shareholder value creation separately for each of the nine different categories of firms.

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Zimonjić, Stefan, Milan Gavrilović, and Miloš Roganović. "Methods for share values assessment and shareholder value creation." Trendovi u poslovanju 6, no. 1 (2018): 39–49. http://dx.doi.org/10.5937/trendpos1801039z.

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18

Vasconcelos, Lucas Nogueira Cabral de, and Orleans Silva Martins. "Value and growth stocks and shareholder value creation in Brazil." Revista de Gestão 26, no. 3 (July 15, 2019): 293–312. http://dx.doi.org/10.1108/rege-12-2018-0127.

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Purpose Investors label high (low) book-to-market (B/M) firms as value (growth) companies. The conventional wisdom supports that growth stocks grow faster than the value ones, creating greater shareholder value. The Purpose of this paper is to analyze how stocks of growth and value companies create value for their shareholders in Brazil, compared to the USA market. For this, the authors analyze three dimensions of return. Design/methodology/approach First, the authors perform portfolios to analyze the growth rates of shareholders’ return. Then, the authors perform regressions to study the explanatory power of the B/M in growth. The data come from Thomson Reuters Eikon database and the Brazilian Institute of Geography and Statistics. The authors select all non-financial firms with available data from 1997 to 2017. Findings The profitability of growth firms is higher than the value ones, in almost every year after the portfolios’ formation, with little variation. Contrary to the findings for the US market, growth companies in Brazil show higher dividend growth than value companies. Research limitations/implications It is possible that the database does not contain complete and entirely reliable accounting data, which may partially affect the results. Practical implications The findings contradict those exposed in the USA. The implications are the inverse of the US study: the duration-based explanation could be a vital factor for the value premium in the Brazilian stock market. Also, the findings support the standard valuation techniques and help the growth rates estimation in the valuation process (top-down approach). Originality/value This study is the first to compare the profitability and dividend growth of growth/value stocks in the Brazilian market. Overall, growth stocks have considerable profitability, and dividend growth compared to value stocks.

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VINA R, BHOJWANI, and THAKKAR MANOJ K. "Study of Shareholder Value Creation and Measurement with use "Value based Management " Method (Vbm)." Indian Journal of Applied Research 4, no. 6 (October 1, 2011): 273–74. http://dx.doi.org/10.15373/2249555x/june2014/87.

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20

Salvioni, Daniela M., and Francesca Gennari. "CSR, Sustainable Value Creation and Shareholder Relations." Symphonya. Emerging Issues in Management, no. 1 (2017): 36. http://dx.doi.org/10.4468/2017.1.04salvioni.gennari.

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21

Zumente, Ilze, and Jūlija Bistrova. "ESG Importance for Long-Term Shareholder Value Creation: Literature vs. Practice." Journal of Open Innovation: Technology, Market, and Complexity 7, no. 2 (May 6, 2021): 127. http://dx.doi.org/10.3390/joitmc7020127.

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This article aims to detect how ESG adds value to the long-term shareholder value creation and to discover whether businesses are aware of positive ESG effects and, therefore, whether they will become more ESG-conscious. By conducting a qualitative content analysis on the academic literature, this article firstly aims to determine if shareholders’ value is positively affected by corporate ESG awareness. Secondly, to test whether companies are becoming more conscious about the importance of ESG, the mission statements of publicly listed Central and Eastern European (CEE) companies are compared to their decade-old versions. This analysis allows us to conclude on whether companies have shifted their attention to the ESG factors as a part of their purpose of existence and, therefore, for long-term shareholder value creation, which is one of the main goals of the exchange-listed enterprises. The content analysis results show that companies with higher sustainability awareness ensure shareholder value creation via improved financial performance, management quality as well as reduced risk metrics. Additionally, qualitative nonfinancial factors such as reputation, stakeholder trust, employee satisfaction and engagement provide an even more significant effect on the long-term value than the pure financial matters. The theoretical trend is found to be supported by the fact that sustainability practice and consumer-oriented keywords dominate the mission statements of CEE companies, while keywords related to shareholders and profit experienced the most significant decrease from 2012 to 2021. The present research is unique as it looks at how companies tend to become more ESG aware, integrating the sustainability perspective into their mission statements in response to the global sustainability trend.

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22

Venugopal, Merugu, Ravindar Reddy M., and Bhanu Prakash Sharma G. "Shareholder Value Creation: A Review of the Theoretical and Empirical Literature." Asia-Pacific Journal of Management Research and Innovation 14, no. 3-4 (September 2018): 74–80. http://dx.doi.org/10.1177/2319510x18817189.

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The article attempts to study in detail the significance of shareholder value creation in the companies in emerging markets and reviews the research articles and studies available in categories such as importance, empirical evidence and drivers of shareholder value creation. The purpose of this article is to give an insight into shareholder value in the first section followed by the empirical evidence and drivers of the shareholder value. For this purpose of review, the article considers various studies made on shareholder value creation published by various recognised and other recognised sources. It is observed that shareholder value creation is the most important objective in this competitive business environment to maintain the long-term relationship with the investors. The empirical evidence attempts to prove that value-based measures outperform the traditional accounting measures. The article tries to investigate the need for finding the superior measure among the shareholder value performance measures and recommends the need for reviewing the traditional performance methods.

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Oleksy, Paweł, and Andrzej Zyguła. "The Effect of Ownership Structure on Dividend Policy and Shareholder Value: A Financialisation Perspective on Construction Companies in Poland." Central European Economic Journal 3, no. 50 (December 18, 2018): 41–52. http://dx.doi.org/10.1515/ceej-2017-0016.

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Abstract In the paper, we examine the impact of ownership structure on dividend policy and shareholder value in non-financial companies from construction sector in Poland. More specifically, by distinguishing between financial and non-financial shareholders, we verify the involvement of financial institutions in company ownership and how it translates into changes in major dividend and shareholder value indicators. Our results show that the presence of financial investors in the ownership structure has a positive impact on probability that the company will pay out dividends, what is symptomatic for financialisation. However, there is not enough evidence to support similar conclusion regarding shareholder value creation.

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Campa, Jose Manuel, and Ignacio Hernando. "Shareholder Value Creation in European M&As." European Financial Management 10, no. 1 (March 2004): 47–81. http://dx.doi.org/10.1111/j.1468-036x.2004.00240.x.

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Venugopal, Merugu, Bhanu Prakash Sharma G., and Ravindar Reddy M. "Impact of Capital Structure on Shareholder Value in Indian Pharmaceutical Industry: An Empirical Approach Through Created Shareholder Value." Global Business Review 19, no. 5 (August 20, 2018): 1290–302. http://dx.doi.org/10.1177/0972150918788741.

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Enhancing shareholder value is one of the primary goals along with the profitability in the competitive world. Top-level management is striving for creating the higher shareholder value by making efficient decisions. Shareholder value as the key objective of the firm and measures such as economic value added, market value added, shareholder value added and created shareholder value (CSV) have gained popularity in measuring the shareholder wealth creation. Among various financing decisions, capital structure decision plays a vital role, that is, mix of debt and equity. Considering the optimal capital structure with the right balance between equity and debt is always a challenge for the financial managers, and also to run the business successfully by gaining higher profits and enhancing shareholder value. An attempt has been made to analyse the capital structure impact on shareholder value by considering CSV as a shareholder value measure in 77 Indian pharmaceutical firms listed in BSE over a period of 9 years from 2007 to 2015. Using the balanced panel data and regression models, we found that determinants such as debt–equity ratio, long-term debt ratio and short-term debt ratios have positive correlation with CSV and negatively related to total debt ratio in the absence of tax.

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Hall, John H. "Drivers Creating Shareholder Value In South African Manufacturing Firms." Journal of Applied Business Research (JABR) 28, no. 5 (August 21, 2012): 1035. http://dx.doi.org/10.19030/jabr.v28i5.7243.

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The objective of this study was to determine shareholder value drivers for South African manufacturing firms listed on the Johannesburg Securities Exchange (JSE) from 2006 to 2010. In order to optimise shareholder value creation, management must be able to recognise value drivers that it can control. A multiple regression analysis was used to identify the value drivers of manufacturing firms in South Africa. The value drivers found to be significant in explaining shareholder value are the cost of goods to sales percentage, the degree of manufacturing leverage, and the capital investment in plant and equipment. Value-based management incorporating these value drivers can guide manufacturing managers toward optimal shareholder value creation.

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Davis, Gerald F. "American Cronyism: How Executive Networks Inflated the Corporate Bubble." Contexts 2, no. 3 (May 2003): 34–40. http://dx.doi.org/10.1525/ctx.2003.2.3.34.

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“Shareholder value” was the sacred mantra of American business in the 1990s. But creating shareholder value can be a fickle undertaking and corporate executives often followed the lead of their colleagues. The result was a contagion of questionable business practices that resulted in the creation of a corporate bubble—and its implosion.

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Bapuji, Hari, Bryan W. Husted, Jane Lu, and Raza Mir. "Value Creation, Appropriation, and Distribution: How Firms Contribute to Societal Economic Inequality." Business & Society 57, no. 6 (June 3, 2018): 983–1009. http://dx.doi.org/10.1177/0007650318758390.

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Firms are central to wealth creation and distribution, but their role in economic inequality in a society remains poorly studied. In this essay, we define and distinguish value distribution from value creation and value appropriation. We identify four value distribution mechanisms that firms engage in and argue that shareholder wealth maximization approach skews the value distribution toward shareholders and top executives, which in turn contributes to rising economic inequalities around the world. We call on organizational scholars to study the value distribution role of firms and its consequences for society, and introduce the articles in this volume of the special issue on economic inequality, business, and society.

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Vu, Joseph D. V. "Strategy and Shareholder Value Creation: The Real Options Frontier." CFA Digest 31, no. 2 (May 2001): 40–42. http://dx.doi.org/10.2469/dig.v31.n2.867.

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Rojek, Tomasz. "THE CONDITIONALITY OF THE PROCESS OF SHAREHOLDER VALUE CREATION." Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia 89 (2017): 323–32. http://dx.doi.org/10.18276/frfu.2017.89/2-25.

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Amram, Martha, and Nalin Kulatilaka. "STRATEGY AND SHAREHOLDER VALUE CREATION: THE REAL OPTIONS FRONTIER." Journal of Applied Corporate Finance 13, no. 2 (June 2000): 15–28. http://dx.doi.org/10.1111/j.1745-6622.2000.tb00051.x.

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Huffman, Stephen Phillip. "Value Creation or Destruction? Hedge Funds as Shareholder Activists." CFA Digest 39, no. 2 (May 2009): 14–16. http://dx.doi.org/10.2469/dig.v39.n2.16.

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Clifford, Christopher P. "Value creation or destruction? Hedge funds as shareholder activists." Journal of Corporate Finance 14, no. 4 (September 2008): 323–36. http://dx.doi.org/10.1016/j.jcorpfin.2008.04.007.

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Hilmola, Olli-Pekka. "Role of inventory and assets in shareholder value creation." Expert Systems with Applications: X 5 (April 2020): 100027. http://dx.doi.org/10.1016/j.eswax.2020.100027.

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Garcia, Fabio Gallo, Elmo Tambosi Filho, and Luiz Maurício Franco Moreira. "Enterprise value and disclosure level: Evidences in the Brazilian market." Corporate Ownership and Control 8, no. 1 (2010): 56–61. http://dx.doi.org/10.22495/cocv8i1p5.

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There is a strong tendency in global markets towards an enhanced level of corporate transparency regarding the activities of companies and, as a result, information on their performance. The Purpose of this study is to analyze the relationship between greater disclosure levels and shareholder value creation. Increasing levels of disclosure are required from companies‟ management before shareholders and the society in general. Obscure practices that fail to take into consideration the best interests of shareholders increase risks and cause shares to lose liquidity. The São Paulo Stock Exchange‟s “Novo Mercado” (“New Market”) emerged from the intent to improve the Brazilian stock market by adopting best practices in corporate governance, adding transparency to disclosed information, and heightening the respect for the interests of shareholders, whether they may be minority or not. The “Novo Mercado” intends to foster a differentiated environment in which companies committed to corporate governance are recognized and can benefit from better stock prices, resulting in lower placement costs and increased liquidity. Our research will assume that companies with American Depositary Receipts - ADRs are committed to a higher level of disclosure as a result of the requirements of the Security Exchange Commission – SEC, and the Financial Accounting Standards Board - FASB; an empiric study about these firms will be performed. We will determine, through a Study Event concerned with cases where ADR have been issued, which consequences of the commitment to higher levels of disclosure as regards shareholder are responsible for value creation, and what are the reflections on the stock price quoted in the Brazilian market.

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Busch, Timo, Jens Hamprecht, and Sandra Waddock. "Value(s) for Whom? Creating Value(s) for Stakeholders." Organization & Environment 31, no. 3 (August 29, 2018): 210–22. http://dx.doi.org/10.1177/1086026618793962.

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While mankind in the 21st century faces several sustainability challenges, many business practices remain on a nonsustainable pathway. At the same time, many scholars as well as managers consider maximizing shareholder wealth as the only business imperative. We argue that this situation calls for revisioning—that is, reorienting and redefining—what is meant by value creation. This revisioning requires a considerable broadening of our understanding about the purposes and functioning of businesses. Thus, we ask one central question: Value(s) for whom? In this article, we derive and discuss three phases of the academic debate on stakeholders and value creation. We argue that in today’s third phase, the notion of collective value frames the debate. To enable transformations toward creating collective value, embedded relations with stakeholders are of central relevance. In a nutshell, the answer to our question is the following: Creating value(s) for stakeholders.

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Gong, James Jianxin. "Examining Shareholder Value Creation over CEO Tenure: A New Approach to Testing Effectiveness of Executive Compensation." Journal of Management Accounting Research 23, no. 1 (December 1, 2011): 1–28. http://dx.doi.org/10.2308/jmar-10105.

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ABSTRACT This paper examines the relationship between CEO compensation and shareholder value added over CEO tenure. The research design exploits two fundamental attributes of CEO compensation and shareholder value added: (1) both CEO compensation and shareholder value added aggregate naturally over CEO tenure, and (2) extending the time interval over which the two variables are measured is likely to result in a better match between CEO compensation and shareholder value created by the CEO. I measure CEO compensation with nominal value of CEO pay, ex post realized pay, and ex ante pay-for-performance sensitivity. I find that CEOs receiving higher nominal or realized pay create more shareholder value. Further, higher median pay-for-performance sensitivity during CEO tenure is associated with higher aggregate market value changes and cumulative abnormal stock returns. Finally, CEO pay efficiency (calculated as the ratio of shareholder value added to CEO pay, both aggregated over CEO tenure) is higher if median pay-for-performance sensitivity during CEO tenure is higher. Data Availability: The data are available from public sources identified in this study.

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Biglar, Abbas, Nima Hamta, and Mona Ahmadi Rad. "A Mathematical Programming Approach to Supply Chain Network Design considering Shareholder Value Creation." Discrete Dynamics in Nature and Society 2022 (October 6, 2022): 1–22. http://dx.doi.org/10.1155/2022/2072301.

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One of the main goals of supply chain management is to ensure proper flows of products and information through all nodes to supply them in the right place at the right time. To achieve this objective, it is very important to consider flows of products and finances among supply chain nodes. Traditionally, operational and financial processes have been optimized as separate problems. The developed model addresses the problem of designing a supply chain network and tries to integrate both areas of operations and financial aspects to maximize the value created and measured by the Shareholder Value Analysis (SVA). The results show that with appropriate financial decisions, creating more value for the company and its shareholders is achievable. The developed model with a new financial approach is able to improve the total created shareholder value as much as 0.7% larger than the SVA obtained without financial aspects and 0.93% larger than the value created by the basic model. The main reason for an increase in value creation is due to new operational and financial aspects, which mainly show the possibility of closing facilities and bank debt repayments. To validate and show the applicability of the proposed model, it was solved by GAMS-BARON solver with data provided from the literature. Sensitivity analyses on financial parameters were performed to evaluate the results.

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Kimunya, Amos Muhinga, Amos Njuguna, and Francis Wambalamba. "Shareholder Engagement and Firm Value Creating Outcomes in Kenya." Journal of Accounting and Finance in Emerging Economies 5, no. 1 (June 30, 2019): 13–22. http://dx.doi.org/10.26710/jafee.v5i1.673.

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Purpose: The objective of the study was to determine the firm value creating outcomes arising from institutional shareholder engagement in Kenya. Methodology: The study used data from a sample of 117 institutional investors in the Nairobi Securities Exchange, Kenya, selected using stratified simple random sampling technique. Findings: The study established that the shareholder engagement outcome that significantly explains firm value creation is improvement of a firm’s system of governance, which includes boards of directors that have independent, equitable and minority representation. Implications: The study contributes to literature on shareholder engagement from a Kenyan perspective and adds an impetus to investors, management and policymakers to address issues that are impeding shareholder engagement given its effect on governance and value of the firm. The study recommends that firms invest in improvement in governance structures, and policymakers are advised to maintain an updated register of all the institutional investors, including their current contacts, and a Kenya-specific central depository of data on engagement actions and outcomes across listed companies.

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Fasol, Ronald, and Colin Firer. "Do South African managers focus on the creation of shareholder value?" South African Journal of Business Management 26, no. 2 (June 30, 1995): 72–79. http://dx.doi.org/10.4102/sajbm.v26i2.826.

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Self-administered questionnaires were sent to executive level managers of randomly chosen Johannesburg Stock Exchange (JSE) listed companies. Respondents were tested for their understanding and implementation of shareholder value practices. The majority of respondents were at a senior management level. It was found that shareholder value management is still regarded as a financial management tool and not understood to be a framework for the integration of financial and strategic planning using the economic model of the firm. The majority of respondents allocate resources on a project by project basis and use the top-down approach in the setting of financial targets resulting in a concentration of value around a few business units in the company's portfolio. Strategic plans are not generally evaluated according to shareholder value potential. A shortcoming is the use of accrual accounting measures in financial planning and for the setting of performance targets. A limited number of respondents had full financial and operational autonomy in their business units and performance targets were mostly short term (less than three years) in nature.

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Bartram, Sohnke M. "Corporate Risk Management as a Lever for Shareholder Value Creation." Financial Markets, Institutions and Instruments 9, no. 5 (December 2000): 279–324. http://dx.doi.org/10.1111/1468-0416.00038.

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Kajackaite, Agne, and Dirk Sliwka. "Prosocial managers, employee motivation, and the creation of shareholder value." Journal of Economic Behavior & Organization 172 (April 2020): 217–35. http://dx.doi.org/10.1016/j.jebo.2020.02.021.

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Majumdar, Sudipa, and Rachna Banerjee. "Determinants of shareholder value creation - platform versus traditional business models." International Journal of Business Performance Management 21, no. 1/2 (2020): 230. http://dx.doi.org/10.1504/ijbpm.2020.10027633.

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Banerjee, Rachna, and Sudipa Majumdar. "Determinants of shareholder value creation - platform versus traditional business models." International Journal of Business Performance Management 21, no. 1/2 (2020): 230. http://dx.doi.org/10.1504/ijbpm.2020.106114.

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MacDonald, Randy. "A template for shareholder value creation on M&As." Strategic Direction 21, no. 5 (May 2005): 3–10. http://dx.doi.org/10.1108/02580540510593977.

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Toušek, Zdeněk, Jana Hinke, Barbora Gregor, Martin Prokop, and Dalia Streimikiene. "SHAREHOLDER VALUE CREATION WITHIN THE SUPPLY CHAIN – WORKING CAPITAL PERSPECTIVE." Polish Journal of Management Studies 26, no. 1 (December 2022): 310–24. http://dx.doi.org/10.17512/pjms.2022.26.1.19.

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Aaen, Thomas, and Rainer Lueg. "Performance pay sensitivity: Do top management incentives align with shareholder value creation?" Corporate Ownership and Control 19, no. 3 (2022): 168–81. http://dx.doi.org/10.22495/cocv19i3art13.

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Arising from the principal-agent consideration, Jensen and Murphy (1990b) studied the pay-performance sensitivity (including pay, options, stockholdings, and dismissal) for chief executive officers (CEOs) in the 1980s. They found that CEO wealth changes $3.25 for every $1,000 change in shareholder wealth. In this study, we revisit the issue of the linkage between CEO pay and performance but with the difference that we only include observable measures in the pay-performance sensitivity estimate. Our data on executive compensation stems from the ExecuComp database on S&P 1500 firms, and the performance data from the Center for Research in Security Prices (CRSP) database (total: 23,737 firm-year observations). We find that CEO wealth changes $5.34 for every $1,000 change in shareholder wealth. Almost all of this sensitivity is attributed to compensation through stock options and the CEO’s inside stockholdings. Today, the incentives generated by stock options have increased thirteen times, and the total pay-performance sensitivity has almost doubled in value, compared to when Jensen and Murphy (1990b) estimated the pay-performance sensitivity in the 1980s for the first time. Despite the increased pay performance sensitivity, we hypothesize that internal and external political forces negatively affect the CEO’s performance incentives. Compensation constraints reduce the pay performance sensitivity and hereby the incentives for the CEO to maximize shareholder wealth. Further research on how CEO wealth varies with absolute and relative corporate performance is required to determine if the CEO’s incentives are consistent with shareholder wealth maximization.

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Tarigan, Josua, Saarce Elsye Hatane, Linneke Stacia, and Deborah Christine Widjaja. "Corporate social responsibility policies and value creation: does corporate governance and profitability mediate that relationship?" Investment Management and Financial Innovations 16, no. 2 (June 20, 2019): 270–80. http://dx.doi.org/10.21511/imfi.16(2).2019.23.

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With a purpose to give a deep understanding relating to the manifestation of social responsibilities practices among Indonesian companies, this paper reflects the relationship of corporate social responsibility (CSR), corporate profitability (CP), value creation (VC) and good corporate governance (GCG). Kinder, Lydenberg, and Domini’s (KLD) measurement approach is used in this study to measure the social responsibility practices, as this gives cross-border analysis of social responsibility. Corporate profitability captures return on assets, which is accounting-based measurement, whereas value creation explains the economic value added, which is shareholder-based measurement. Structural Equation Model (SEM) analysis is conducted for Indonesian listed companies, which appeared in Corporate Governance Perception Index (CGPI). The empirical result suggests that CSR serves as a tool in assisting shareholders value and performance. Accordingly, firms should incorporate CSR practices to enhance its strategic investment and sustain a strong relationship with its stakeholders. Subsequently, management should also take concern of having good corporate governance in order to improve company’s performance by supervising and monitoring of the company’s operation, ensure the fulfillment to the stakeholder’s interest. This paper presents fresh insights into applications of corporate social responsibility principles and corporate governance in Indonesian context that has not received systematic attention and consideration in the literature.

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Teti, Emanuele, Francesco Perrini, and Linda Tirapelle. "Competitive strategies and value creation: a twofold perspective analysis." Journal of Management Development 33, no. 10 (October 7, 2014): 949–76. http://dx.doi.org/10.1108/jmd-08-2012-0100.

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Purpose – The purpose of this paper is to investigate whether the implementation of a defined competitive strategy – differentiation or cost leadership – brings about different value creation levels, where “value” is defined in a twofold perspective as “shareholder value” vs “stakeholder value” and “social capital”. Design/methodology/approach – A sample of 169 European companies is investigated. Simple linear regressions and t-tests for the equality of means are conducted. Findings – While no significant differences are found in the creation of value for the shareholders, firms following differentiation strategies generate considerably higher value for all the stakeholder groups than companies pursing cost leadership strategies. Results also show that size and reputational considerations play a significant role in explaining the different stakeholder value performances. Research limitations/implications – Some data such as off-balance sheet items could have influenced the calculation of the discriminant values for strategy classification. Practical implications – Although the two groups manage to achieve comparable levels of profitability, the differentiators, presumably because of their structural outward-facing orientation, seem to be better positioned to meet the challenges of the next wave of growth, which resides in the substantial interconnection between economic and societal value. Companies need a better understanding of how the stakeholder value theory and social capital can influence value creation and long-term success. Originality/value – In light of the importance of competitive strategy as a value-creation tool, the paper sheds new light on the relationship between competitive strategies and value creation.

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Venugopal, Merugu, Bhanu Prakash Sharma G, and M. Ravinder Reddy. "Shareholder Value Creation Measures: An Empirical Analysis on Indian Pharmaceutical Sector." Asian Journal of Research in Business Economics and Management 7, no. 5 (2017): 312. http://dx.doi.org/10.5958/2249-7307.2017.00059.7.

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