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Description of Creating Shareholder Value

The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. Now, in this substantially revised and updated edition of his 1986 business classic, "Creating Shareholder Value", Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns. After 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. Further, Rappaport presents provocative new insights on shareholder value applications to: (1) business planning, (2) performance evaluation, (3) executive compensation, (4) mergers and acquisitions, (5) interpreting stock market signals, and (6) organizational implementation. Readers will be particularly interested in Rappaport's answers to three management performance evaluation questions: (1) What is the most appropriate measure of performance? (2) What is the most appropriate target level of performance? and (3) How should rewards be linked to performance? The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a merger from both sides of the negotiating table.

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

Title Information

ISBN:

9780684844107

Pages:

320 pages

Format:

Hardback

Product Code:

5400

Publisher:

Simon & Schuster

Published:

05/05/1998

Edition:

2nd Revised edition

Press and Industry Reviews

'Updates all of us on the front lines with the latest thinking about creating shareholder value - from the social aspects to the very specific. I recommend this book to any person seriously concerned about the function of a corporation in a market economy.'
Stephen Bollenbach, President of CEO, Hilton Hotels Corp.

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Contents of Creating Shareholder Value

1. Shareholder Value and Corporate Purpose

2. Shortcomings Of Accounting Numbers

3. Shareholder Value Approach

4. Formulating Strategies

5. Valuing Strategies

6. Stock Market Signals To Management

7. Performance Evaluation and Executive Compensation

8. Mergers and Acquisitions

9. Implementing Shareholder Value

10. The Shareholder Scoreboard