Creating Shareholder Value: A Guide for Managers and Investors

Begins With Dramatic Proof Of The Shortcomings Of Accounting Numbers As Earnings Per Share, Return On Investment, And Return On Equity, And Explains To Develop Value-creating Business Strategies And How To... 1. Shareholder Value And Corporate Purpose; Management Versus Shareholder Objectives; Shareholders And Stakeholders; Shareholders Are Us -- Shortcomings Of Accounting Numbers -- 2. Shareholder Value Approach; Earnings: An Unreliable Bottom Line; The Trouble With Accounting Return On Investment (roi); Roi Versus Dcf Return Illustrated; Additional Shortcomings Of Roi; Shortcomings Of Return On Equity (roe) -- 3. Shareholder Value Approach; Estimating Shareholder Value; Estimating Shareholder Value Added (sva); Threshold Margin; The Shareholder Value Network -- 4. Formulating Strategies; Strategy Formulation Process; Competitive Advantage And Shareholder Value; Strategy Best Seller -- 5. Valuing Strategies; Strategy Valuation Process; Valuing Alternative Business Opportunities; Valuing Interdivisional Synergies; Choosing Optimal Investment Level For A Newbusinesss; Do Stock Repurchases Create Value?; Ten Value-creation Questions --^ 6. Stock Market Signals To Management; Reading The Market; Corporate Versus Shareholder Rate Of Return; Management Implications -- 7. Performance Evaluation And Executive Compensation; Ceos And Other Corporate-level Executives; Operating Managers; Performance Evaluation Alternatives -- Shareholder Value Added (sva); Performance Evaluation Alternatives -- Residual Income; Performance Evaluation Alternatives -- Economic Value Added (eva); Performance Evaluation Alternatives -- Change In Residual Income Or Change In Eva; Leading Indicators Of Value; Target Level Of Performance; Linking Rewards To Superior Performance; 8. Mergers And Acquisitions; The Acquisition Process; Value Creation Framework; Do Mergers Create Value For Theacquiringg Company?; Gillete's Acquisition Of Duracell International; Premium Advice For Targets -- 9. Implementing Shareholder Value; Implementing Objectives; Gaining Commitment; Introducing Shareholder Value; Reinforcing Shareholder Value --^ 10. The Shareholder Scoreboard; A Rising Tide Doesn't Lift All Stocks; Investing As A Game Of Expectations. Alfred Rappaport. Includes Index. Bibliography: P. 241-257.