The theory of shareholder value is an issue that has to comprise a dichotomy in terms of the standpoint from which it is looked at. Shareholders and the management of a company in many cases still represent counterparts whereas interests do not continuously align.
In this study shareholder value theory is approached by investigating the shareholder perspective in correspondence to shareholder wealth gains in the UK market environment through the implementation of six major financial performance measurement methods including: the Price/ Earnings ratio, the Discounted Cash Flow Model, the Dividend Valuation Model, the Economic Value Added, the Market Capitalization, the Capital asset Pricing Model and the shareholder value approach as suggest by Alfred Rappaport. Having applied them to six selected stock listed companies enabled the author to develop a shareholder value ranking according to their financial performance and the deriving shareholder value dedication.
Inhaltsverzeichnis (Table of Contents)
- Chapter 1
- Introduction
- Chapter 2
- Methodology
- Definition
- Approaches
- Applied Approach
- Time Horizons
- Research Techniques
- Research Limitations
- Literature Review
- The financial market
- Providers of Finance - an international mapping
- The financial market
- General Information - Introduction
- Price-Earnings Ratio (P/E - Ratio)
- Discounted Cash Flow Model
- Dividend Valuation Model
- Economic Value Added (EVA Model)
- Market Capitalization
- Capital Asset Pricing Model
- Shareholder Value Approach - A. Rappaport
- Analysis
- Price/Earnings Ratio
- Discounted Cash Flow Model
- Dividend Valuation Model
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation investigates the theory of shareholder value from a shareholder perspective. It aims to assess shareholder wealth gains within the UK market environment by implementing six major financial performance measurement methods. The study focuses on the following key themes:- The dichotomy of interests between shareholders and company management.
- The application of financial performance measurement methods to assess shareholder value.
- The ranking of companies based on their financial performance and shareholder value dedication.
- The impact of shareholder value theory on corporate decision-making.
- The role of financial markets in facilitating shareholder value creation.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1 introduces the topic of shareholder value and sets the stage for the dissertation. Chapter 2 outlines the methodology used in the research, including the definition of shareholder value, the various approaches employed, and the specific research techniques implemented. Chapter 3 delves into the literature review, exploring the financial market, corporate objectives, and the concept of shareholder value theory. It examines various financial ratios and models used to measure shareholder value, including the Price-Earnings Ratio, Discounted Cash Flow Model, Dividend Valuation Model, Economic Value Added Model, Market Capitalization, Capital Asset Pricing Model, and the shareholder value approach proposed by Alfred Rappaport. Chapter 4 analyzes the chosen financial performance metrics in detail, providing insights into the application of these measures and their implications for shareholder value.Schlüsselwörter (Keywords)
This dissertation explores key concepts within the field of finance and shareholder value, including shareholder value theory, financial performance measurement, financial ratios, Discounted Cash Flow Model, Dividend Valuation Model, Economic Value Added, Market Capitalization, Capital Asset Pricing Model, Alfred Rappaport, UK market environment, and shareholder wealth gains. The study delves into the complex relationship between shareholders and company management, highlighting the importance of aligning interests to maximize value creation.- Quote paper
- Tony Müller (Author), 2011, A Study on the Integrated Approach of Shareholder Value Analysis, Munich, GRIN Verlag, https://www.grin.com/document/211367
