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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There still is no free lunch. Simply said, I will help grow the pie if you give me my fair share.

They have much deeper and much more important stakes in our company than our shareholders. Alex rated it it was amazing Aug 21, Exclusive reliance on shareholder returns, however, has its own limitations. The most frequent suggestion is that employees be granted meaningful stakes in the company’s stock.

None of them have the democratic freedom as shareholders do to buy or sell their shares. The author discusses the chance of gaining a competitive advantage in various industries and shows that management can work with a number of value drivers to increase shareholder value a sales growth rate, b profit margin, c working capital investment, d fixed capital investment and e the cost of capital.

The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. There is unfortunately another side to restructuring and employee layoffs.

To see what your friends thought of this book, please sign up. Workplace safety serves as an excellent example. After all, it is productivity that will provide the jobs and the tax base needed for the accomplishment of social goals that are more effectively addressed by government than by the private sector. This view recognizes that to continue to serve all stakeholders, companies must be competitive if they are to survive.


Corporate management, however, has neither the political legitimacy nor the expertise to decide what is in the social interest.

Creating Shareholder Value

Our form of government calls for elected legislators and the judicial system to be the mechanisms for collective choice.

Lance Bertsch rated it it was amazing Nov 05, I recommend this book to any person seriously concerned about the function of a corporation in a market economy. First, there is a significant wage and benefits premium that employees demand for the higher risk associated with a dangerous workplace. According to Rappaport given that investors increasingly value bonds by discounting future cash flows, it stands to reason that they value stocks in the same fashion.

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. But it is these decisions that subordinate shareholder interests that trigger the much maligned corrective mechanisms of takeovers and restructuring.

The same commentators that just a few years ago were lambasting CEOs for underperforming against foreign competitors are now criticizing CEOs for downsizing to improve competitiveness. Customers and Employees Two stakeholders, customers and employees, merit further examination.


Creating Shareholder Value: A Guide for Managers and Investors

In a market-based economy that recognizes the rights of private property, the only social responsibility of business is to create shareholder value and to do so legally and with integrity. In brief, a value-creating company benefits not only its shareholders but the value of all other stakeholder claims, while all stakeholders are vulnerable when management fails to create shareholder value.

None of them have the democratic freedom as shareholders do to buy or sell their shares. Get a FREE e-book by joining our mailing list today!

Not Karl Marx rated it liked it Jun 28, Michael is the author of Think Twice: The most direct means of linking top management’s interests with those of shareholders is to base compensation, rappwport particularly the incentive portion, on market returns realized by shareholders. Lists with This Book.

Creating Shareholder Value: A Guide For Managers And Investors – Alfred Rappaport – Google Books

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. My library Help Advanced Book Search. Readers will be particularly interested in Rappaport’s answers to three management performance evaluation questions: