Further, Rappaport presents provocative new insights on shareholder value of his business classic, Creating Shareholder Value, Alfred Rappaport. It’s become fashionable to blame the pursuit of shareholder value for the ills besetting corporate America: managers and investors obsessed with next quarter’s. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport.

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In the early s there were very few companies with an unambiguous commitment to shareholder value. A positive “value gap” was an invitation to well-financed corporate raiders to bid for the company and replace incumbent management.

The insights on acquisitions vaule the work on performance measurements are very important for fast-growing companies. See full terms and conditions and this month’s choices. It is, however, important to examine briefly the most frequent suggestion on how to align the interests of employees with those of shareholders.

Creating Shareholder Value

Hence, the main audience is corporate managers but the book is equally useful to anyone on the financial m During the summer InvestingByTheBooks will review some older books that we never got around to writing about although we think they are important.

Feb 24, Sanjay Jhaveri rated it it was amazing Shelves: According to Rappaport given that investors increasingly value bonds by discounting future cash flows, it stands to rappaoort that they value stocks in the same fashion.

The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. The lesson is clear: The stakeholder model that attempts to balance the interests of everyone with a stake in the company makes it easier for corporate managers to justify uneconomic diversification or overinvestment in a declining core business, since these moves are likely to be endorsed by constituencies crexting than shareholders.


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

By some estimates, personal stock holdings and retirement plans account for over 75 percent of Fortune company shares. The shareholder value approach presented here has crating widely embraced by publicly traded as well as privately held companies worldwide. The mutual interdependence among shareholders and other stakeholders makes it imperative that they engage in a partnership for value creation.

These employees are unlikely to find jobs elsewhere that pay as much as their current employment. It would, however, be a profound error to view increases in a company’s value as a concern just for shareholders.

Managers, like other people, act in their self-interest.

Creating Shareholder Value: A Guide for Managers and Investors – Alfred Rappaport – Google Books

The takeover movement demonstrated little tolerance for managements not attentive to shareholder value. Account Options Sign in. Recommended measures and their linkage to incentives are detailed in Chapter 7.

While conflicts between customer value and shareholder interests can be quantified and appropriately resolved by sound shareholder value analysis, conflicts between employee and shareholder interests pose a creatung more difficult challenge. The proportion of stock required in compensation packages to align employee interests with those of shareholders is in most instances simply not feasible.

Second, shareholder returns may be materially influenced by what management believes to be unduly optimistic or crdating market expectations at the beginning or end of the performance measurement period.

As a result, the company began to lose money, lay off employees, and, finally, it declared bankruptcy. None of them have the democratic freedom as shareholders do to buy or sell their shares. This is not a new idea. And third, divisional and business unit performance cannot be directly linked to stock price. None of them have the democratic freedom as shareholders do to buy or sell their shares. BusinessWeeks Guide to the Best Business Schools highlighted Michael as one of the schools Outstanding Faculty, a distinction received by only seven professors.


Duke Joo rated it really liked it May 13, Michael has been an adjunct professor of finance at Columbia Business School since and is on the faculty of the Heilbrunn Center for Graham and Dodd Investing.

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Entering the s CEOs of many public companies were relieved to see Wall Street raiders move backstage. Tell us what you like, so we can send you books you’ll love.

Hardcoverpages. In many cases these employees have developed highly specialized, firm-specific skills that sharwholder substantial value to their employers but less value to other organizations.

Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical 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.

creafing But there was to be no return to business as usual. Get a FREE e-book by joining our mailing list today! Investment Strategist at Credit Suisse.