In Search of Shareholder Value 2nd Ed.

Managing the Drivers of Performance

Andrew Black, Philip Wright, John Davies

Publisher: Prentice Hall, 2001, 366 pages

ISBN: 0-273-65083-1

Keywords: Finance

Last modified: April 16, 2021, 11:48 p.m.

The impact of the information revolution, the integration of capital markets, and the increased ability of investors to compare, and contrast corporate performance has put shareholder value high high on the corporate agenda.These days, investors injecting money into your company are looking for a financial return as good as, if not better tah, if they had invested in any other. Today's businesses need to maximize value for their shareholders or watch their share price plummet, as investors vote with their feet and transfer their money and their trust into competitors' hands.

In Search of Shareholder Value explains the concept of shareholder value and shows how it can help companies and their managers make better, more informed, and proactive decisions. It looks at the philosophy of value creation and at the global financial environment in which value-based management can thrive, and it transforms the insights of market analysts into management tools that can be used throughout the company to add genuine improvements to performance.

The book covers every aspect of learning how to deliver value to your investors, including:

  • introducing basic concepts of shareholder value
  • analyzing the theory and history behind shareholder value
  • establishing the true cost of your capital
  • the market's preference for judging performance on cash flow rather than profit and loss
  • the seven "value drivers" of shareholder value
  • how to calculate your shareholder value
  • the principles of value-based management
  • how shareholder value can help company recovery and mergers and acquisitions
  • a look at the future of value reporting

This second edition also takes into account how shareholder value is being applied around the world — and within emerging economies — and also the impact of e-business on the valuation process.

  • Part 1: What Is Shareholder Value?
    1. Shareholder value: fad versus fact
    2. The history of value
    3. What does your capital cost
    4. Profit is an opinion: cash is a fact
    5. Shareholder value — a definition
    6. Shareholder value: a single metric or a common framework?
  • Part 2: Putting It Into Practice: The Value Mindset
    1. The transforming power of SHV
    2. SHV at war: mergers and acquisitions
    3. Rising from the ashes: value re-creation and SHV
  • Part 3: SHV In Action
    1. Sector appeal
    2. SHV around the world: the emerging consensus
  • Part 4: Bringing It All Together
    1. Reporting on the future: the blueprint
  • Appendix 1: Blueprint Inc.
  • Appendix 2: Betas


In Search of Shareholder Value

Reviewed by Roland Buresund

OK ***** (5 out of 10)

Last modified: May 21, 2007, 3:06 a.m.

The book that defines the term "shareholder value". Nothing to read in one go, but you should have read it.


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