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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.

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The distinction Rappaport makes between shareholder return and corporate return is particularly critical in aalfred markets. Indeed, Main Street is fast replacing Wall Street. 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. Goodreads helps you keep track of books alfrd want to read.

While the performance of top-level corporate officers can be gleaned from annual reports and other publicly available corporate communications, this is not generally the case for divisional managers.

VBM Thought Leader: Alfred Rappaport

Crezting trivia or quizzes yet. Thus, trying to increase shareholder value includes handling all the difficult choices between investing now to hopefully generate higher cash flow in the future.

We have a number of suppliers, institutions, customers, and communities. During the summer InvestingByTheBooks will review some older books that we never got around to writing about although we think they are important. Christine rated it it was amazing Jan 23, Chief executives of some of our largest companies have contended that shareholder interests should not be their primary obligation.

The question in the case of vallue managers is, first, how does the labor market monitor and gain insights about their performance and second, what is the basis for valuing their services. Alfred Rappaport – Creating Shareholder Value. creatingg

For corporate level executives, the question is whether performance for shareholders is the dominant criterion in assessing their value in the executive labor market. Rappaoprt a decade of downsizings frequently blamed on shareholder value decision making, this book presents a new and indepth assessment of the rationale for shareholder value.


Creating Shareholder Value: A Guide for Managers and Investors

Moreover, such downsizing may also adversely affect the morale and productivity of the remaining work force. Books by Alfred Rappaport.

Columbia Business School Publishing, Want to Read Currently Reading Read. What is less obvious is how managers are evaluated in this market. The author advices that the allocation of options should be tied to the above leading indicators and that to the extent the share performance plays shareho,der role, one must look to the relative price performance compared to industry peers.

He is also co-author, with Alfred Rappaport, of Expectations Investing: There are no discussion topics on this vlaue yet. Privatization advocates argue that forecasted Social Security shortfalls can be offset by the higher returns earned from a diversified portfolio of stocks and bonds versus the returns from Treasury notes, which by law Social Security must now invest in. President, Baxter International, Inc Dr. Shareholcer author explains the concept of shareholder value as the present value of all future free cash flows discounted by the cost of capital, net of net debt.

When we realize that shareholders are not “them” but are “us,” the case for shareholder value becomes even more compelling. Selected pages Title Page. In the second part of the book, Rappaport makes it clear to the reader DCF is closely linked to strategic analysis and is not in contradiction with stakeholder analysis, customer value analysis, or Activity Based Costing.

An active market for corporate control places limits on the divergence of interests between management and shareholders. If the company invests in a risky project, stockholders can always balance this risk against other risks in their presumably diversified portfolios.


A business that provides more value than customers are willing to pay for is hardly competitive — and may not even be viable. The source of the problem here is not the use of the shareholder value approach. None of them have the democratic freedom as shareholders do to buy or sell their shares. This is not the place to examine the legitimacy of this argument or its implications for corporate governance.

Alfred Rappaport – Creating Shareholder Value

Some downsizing decisions creatinh predicated on reporting better short-term earnings rather than focusing on the longer term position of the business. Our form of government calls for elected legislators and the judicial system to be the mechanisms for collective choice. The problem instead is its misuse or nonuse, which has led to value-destroying downsizings for companies and their shareholders and uncalled-for dislocations and pain for employees.

Other companies failed to seek the highest valued use for their assets. Brilliant and incisive, this is the one book that should be required rappaoprt for managers and investors who want to stay on the cutting edge of success in a highly competitive global economy.

There is unfortunately another side to restructuring and employee layoffs. The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. Because of its ambiguity and lack of enforceability, the corporate social responsibility model gets little support from policymakers and corporate governance activists today. Alex rated it it was amazing Aug 21, None of them have the democratic freedom as shareholders do to buy or sell their shares.