Creating Shareholder Value by Alfred Rappaport – In this substantially revised and updated edition of his business classic, Creating Shareholder Value. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport. Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and.

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Whatever one thinks of alvred and their tactics, the threats of takeovers did prompt CEOs to give long-overdue focus to delivering value for shareholders. Mastering the Market Cycle: The source of the problem here is not the use of the shareholder value approach. Both managers and investors alike will find this book useful. An active market for corporate control places limits on the divergence of interests between management and shareholders.

VBM Thought Leader: Alfred Rappaport

A true classic on Shareholder Value and Value Based Management, that remains very worthwhile to read even today. The threat of takeover is an essential means of constraining corporate managers who might choose to pursue personal goals at the expense of shareholders.

Reading Stock Prices for Better Returns.

This significant update to the seminal Creating Shareholder Value offers investors and corporate managers a theoretically sound and practically usable guide for decision making.

Indeed, we would expect that the greater the proportion of personal wealth invested in company stock or tied to stock options, the greater would be management’s shareholder orientation. shareyolder

Alfred Rappaport – Creating Shareholder Value

Chief executives of some of our largest companies have contended that shareholder interests should not be their primary obligation.

Brilliant and incisive, this is the one book that should be required reading for managers and investors who want to stay on the cutting edge of success in a highly competitive global economy. Amazon Advertising Find, attract, and engage customers.


Years of restructuring and employee layoffs frequently attributed to shareholder value alfree coupled with politicians who charge top management with self-interest and a shortsighted focus on the current stock price have promoted frustration and uncertainty.

For employees it means more jobs — in the short run. What is less obvious is how managers are evaluated in this market.

The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide.

I believe that the better solution lies in offering employees meaningful incentives for creating value.

Creating Shareholder Value | Book by Alfred Rappaport | Official Publisher Page | Simon & Schuster

Such imposed costs invariably will be passed altred to consumers by way of higher prices, to employees as lower wages, or to shareholders as lower returns. The broader participation of so-called “middle America” also means that security market prices are likely to affect the real economy more than in the past. And it is rappapogt the divisional and business unit levels that most resource allocation decisions are made in decentralized organizations.

The shareholder value approach presented here has been widely embraced by publicly traded as well as privately shadeholder companies worldwide. Enter your mobile number or email address below and we’ll send you a link to download the free Kindle App.

Primarily as a response to significant employee layoffs, “balancing the interests of stakeholders” has commanded increasing attention in the s. The takeover movement of the latter half of the s provided a powerful incentive for managers to focus on creating value. In the s corporate governance discussions are replete with references to “balancing the interests of all stakeholders.

The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. The tradeoff is a 10 percent reduction now or a possible loss sgareholder jobs for many more if not all employees in the near future. Wallace’s quality program significantly increased on-time deliveries as well as its market share.


While many companies used piecemeal applications apfred the shareholder value approach, such as discounted cash-flow analysis for capital budgeting decisions and for merger-and-acquisition pricing, management thinking largely was governed by a short-term earnings orientation.

Creating Shareholder Value

They have much deeper and much more important stakes in our company than our shareholders. For corporate level executives, the question is whether performance for shareholders is the dominant criterion in assessing their value in the executive labor market.

Recommended measures and their linkage to incentives are shareholderr in Chapter 7. Fortunately there is an alternative approach to stakeholders that is consistent with shareholder interests, competitiveness, and, in the final analysis, socially responsible business behavior. Customers demand high-quality products and services at competitive prices.

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.

The passage in of the Occupational Health and Safety Act apparently did little to reduce job-related accidental deaths, since they declined at about the same rate before and after its passage. Further, Rappaport presents provocative new insights on shareholder value applications to: If the company invests in a risky project, stockholders can always balance this risk against other risks in their presumably diversified portfolios.

While most discussions of corporate purpose address the concerns of various stakeholders, comparatively little attention is devoted to who the shareholders of corporate America are today.

First published 12 years ago, the ideas put forth by Rappaport have since become commonplace in companies around the world.