Shareholder Value: Concepts and Cases

It is often said in the world of finance and management that the role of the CEO of an enterprise encompasses something more than just delivering profits. It stretches to the intention of creating and maximizing shareholder value. In this context, value-based management has come a long way in helping enterprises and managers create, measure and enhance shareholder value. It has prescribed many an antidote to overcome major hindrances in processes, operations and systems inside an organization and at the same time pay singular attention to processes that enhance shareholder value. Adhering to and establishing organizational goals by understanding the ultimate goals and objectives of the enterprise may come a long way, according to experts. This involves many inter-related and mutually dependent functions like managing risk, strategy initiation and development, earnings improvement and most importantly focusing and capitalizing on growth opportunities. Things that help goals fall in line with maximizing shareholder value may be some reference points like review of historical performance, comprehending competitors’ strategies, taking note of stock market expectations, due diligence towards ensuring that the current risk factors are all met with realistic and executable measures and preparing for future economic and value-based performance. This book covers some very vital aspects of shareholder value creation at enterprises, what enterprises ought to do in order to create shareholder value and maximize it. Firms that have undertaken shareholder value creation and enhancement on a serious measure are illustrated in the form of cases.