Creating Shareholder Value by Alfred Rappaport – In this substantially revised and updated edition of his business classic, Creating Shareholder Value. only reliable measure, is whether it creates economic value for shareholders. of his business classic, Creating Shareholder Value, Alfred Rappaport. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport.
| Author: | Shakree Samutaur |
| Country: | Morocco |
| Language: | English (Spanish) |
| Genre: | Health and Food |
| Published (Last): | 2 August 2016 |
| Pages: | 155 |
| PDF File Size: | 15.34 Mb |
| ePub File Size: | 13.32 Mb |
| ISBN: | 559-9-53923-242-5 |
| Downloads: | 80915 |
| Price: | Free* [*Free Regsitration Required] |
| Uploader: | Disida |
Free Press December Length: In most cases CEOs are responding to advances brought about by stunning new technology, pressure from more efficient domestic or foreign competitors, opportunities to produce better or less costly products by outsourcing, deregulation, or simply too much capacity chasing too little demand.
Hence, the main audience is corporate managers but the book is equally useful to anyone on the financial markets as it addresses issues bordering between business and finance. Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical Other companies failed to seek the highest valued use for their assets.
Creating Shareholder Value: A Guide for Managers and Investors
Many companies, particularly those in mature industries such as oil, allocated their very substantial excess cash flow toward uneconomic reinvestment or ill-advised diversification. Further, Rappaport presents provocative new insights on shareholder value applications to: The author discusses the chance valuf gaining a competitive advantage in various industries and shows that management can work with a number of value drivers to increase shareholder value a sales growth rate, b profit margin, c working capital investment, d fixed capital investment and e the cost of capital.
Ashiesh Bhatia rated it it was amazing May 11, Lists with This Book. Rappaport does a phenomenal job of bridging the gap between shareholder value theory and practice. This important text makes it blatantly obvious that the short-termism that the shareholder movement often is accused of is a faulty later day rationalization. A curious coalition of liberal and conservative commentators has laid the blame of employee insecurity on CEOs who downsize their companies to increase stock price.
Thus, trying alvred increase shareholder value includes handling all the difficult choices between investing now to hopefully generate higher cash flow in the future.
This view further recognizes that a company’s long-term destiny depends on a financial relationship with each stakeholder that has an interest in the company. A positive “value gap” was an invitation to well-financed corporate raiders to bid for the company and replace incumbent management. Goodreads helps you keep track of books you want to read. Waldron, chairman of Avon Products, Inc. But such support will come only from those whose stock appreciation exceeds their loss from being laid off.
As is the case with other good ideas, shareholder value has moved from being ignored to being rejected to becoming self-evident. The source of the problem here is not the use of the shareholder value approach. Over the next ten years shareholder value will more than likely become the global standard for measuring business performance.
The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a merger from both sides of the negotiating table. The takeover movement of the latter half of the s provided a powerful incentive for managers to focus on creating value.
But there was to be no return to business as usual.
Creating Shareholder Value
After all, it is productivity that will provide the jobs and the tax base needed for the accomplishment of social goals that are more effectively addressed by government than by the private sector. The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. Michael earned an A. In this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns.
Contents Shareholder Value and Corporate Purpose. Fortunately there is an alternative approach to stakeholders that is consistent with shareholder interests, competitiveness, and, in the final analysis, socially responsible business behavior.
Government regulation that presumably “helps” companies to act in the social interest invariably leads to even greater employee insecurity. Primarily as a response to significant employee layoffs, “balancing the interests of stakeholders” has commanded increasing attention in the s.
Creating Shareholder Value: A Guide For Managers And Investors – Alfred Rappaport – Google Books
The most direct means of linking top management’s interests with those of shareholders is to base compensation, and particularly the incentive portion, on market returns realized by shareholders. The proportion of stock required in compensation packages to align employee interests with those of shareholders is in most instances simply not feasible.
Maximizing shareholder value is now embraced as the “politically correct” stance by corporate board members and top management in the United States. They have much deeper and much more important stakes in our company than our shareholders.
In the early s there were very few companies with an unambiguous commitment to shareholder value. For example, layoffs in companies that depend heavily on personal relationships with customers can adversely affect longer term profitability.
Indeed, Main Street is fast replacing Wall Street. Value is created by investing fappaport in the business that generates a return on investment which is higher than the cost for the invested capital. Steve McBride rated it it was ok Aug 25,
