Due to the COVID 19 pandemic many companies have faced and still face countless challenges. Strategies must be adjusted, and costs must be reduced due to the lack of sales to avoid possible company crises. But how rigorous should profit-oriented management be when the world has been caught off guard by an unprecedented pandemic? Is it possible to combine considerate and entrepreneurial action and how can the interests of all concerned be reconciled?
This paper aims to answer and guide these questions. The course of the crisis, the economic consequences and the political measures taken in Germany are discussed. The methodology makes use of current sources and evaluations and sheds light on the shareholder value approach from a historical perspective. It critically examines the application of the concept to the extent of the Corona crisis.
Some 23.53 million people were confirmed as infected and about 810,00 deaths were reported worldwide. The COVID 19 pandemic is changing life as known until the start of 2020 at a drastic pace. The course and the effects herald the economic crisis in 2020.
On Wall Street, the biggest slump in stock prices since 1987 was reported. Other indices around the world also lost heavily because economic life in many countries had largely come to a stand-still. For 2020, the Federal Government expects the gross domestic product to decline by 6.3 per cent. The reasons for this are well known. The drastic restrictions make it impossible to continue to operate as usual. This means that there will not be a full recovery in 2021 either.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Definition of terms
- Cashflow
- Operating and free cash flow
- Net operating cash flow and total cash flow
- Classification
- Profitability
- Cashflow
- The Corona Crisis
- Causes
- Economic consequences
- The shareholder value approach
- Explanation and classification
- Shareholder value as a key figure
- Shareholder value as a concept
- Consequences of the corona crisis and links to shareholder value
- Measures by the Federal Government
- Links to shareholder value
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to examine the impact of the Corona crisis on the shareholder value approach. It discusses the causes and economic consequences of the crisis, explores the shareholder value concept, and analyzes the implications of government measures for shareholder value.
- The impact of the Corona crisis on economic life and businesses.
- The definition and application of the shareholder value approach.
- The relationship between the Corona crisis and shareholder value.
- The effectiveness of government measures in mitigating the economic impact of the crisis.
- The ethical implications of shareholder value maximization in times of crisis.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The introduction sets the context by outlining the global impact of the COVID-19 pandemic and its economic consequences. It emphasizes the challenges faced by companies in navigating the crisis and the need to balance profit-oriented management with responsible action.
- Definition of terms: This chapter defines key terms like cashflow and profitability, providing an understanding of these concepts within the context of shareholder value analysis.
- The Corona Crisis: This chapter examines the causes and economic consequences of the Corona crisis, outlining the global impact and the challenges faced by businesses and economies.
- The Shareholder Value Approach: This chapter delves into the shareholder value approach, explaining its concept, classification, and significance as a key figure in financial analysis.
- Consequences of the Corona Crisis and Links to Shareholder Value: This chapter explores the specific measures taken by the German government in response to the crisis and analyzes their potential impact on shareholder value.
Schlüsselwörter (Keywords)
This paper focuses on the shareholder value approach, the Corona crisis, its economic consequences, government measures, cash flow, profitability, and the ethical implications of shareholder value maximization in times of crisis.
- Citation du texte
- Felix-Sebastian Ament (Auteur), 2020, The Shareholder Value Approach. Criticism using the Example of the Corona Crisis, Munich, GRIN Verlag, https://www.grin.com/document/943426
