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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No eBook available Shareholderr. John rated it really liked it Mar 01, Capitalism is not en vogue in A true classic on Shareholder Value and Value Based Management, that remains very worthwhile to read even today.

It is, however, important to examine briefly the most frequent suggestion on how to align the interests of employees with those of shareholders. In contrast to the significant restructuring undertaken in the United States, overstaffed companies in Japan and Germany are just beginning to acknowledge that global competition will compel them to do the same. Further, Rappaport presents provocative new insights on shareholder value applications to: To satisfy these claims management must generate cash by operating its businesses efficiently.

An active market for corporate control places limits on the divergence of interests between management and shareholders. Investment Strategist at Credit Suisse. Kimberly Miller rated it it was amazing Sep 25, Alfred Rappaport is one of the founders of the creating shareholder value mindsetwhich gained importance in the ’80s and still growing and increasingly accepted worldwide.

They have much deeper valu much more important stakes in our company than our shareholders.

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

Those favoring privatization argue that allowing people to invest at least a part of their retirement money in an account similar to a k or an Individual Retirement Account would ensure valuw long-term viability of the Social Security system without major cuts in benefits or increases in taxes. Rappaport is careful to differentiate the creation of shareholder value from the shareholder return on the stock market.

The author advices that the allocation of options should be tied to shareholdsr above leading indicators and that to the extent the share performance plays a role, one must look to the relative price performance compared to industry peers.


When confronted with a conflict between customer value and shareholder value, management should resolve it in favor of shareholders and the long-term viability of the business.

Creating Shareholder Value

Whatever one thinks of raiders and their tactics, the threats of takeovers did prompt CEOs to give long-overdue focus to delivering value for shareholders. Fabian rated it really liked it Oct 21, With the globalization of competition and capital markets and a tidal wave of privatizations, shareholder value rapidly is capturing the attention of executives in the United Kingdom, continental Europe, Shareholcer, and even Japan.

In the meantime, implementation of shareholder value has helped transform American industry into the most competitive in the world, after a period when all the talk focused on its dismal performance.

On the other hand, providing customer satisfaction does not automatically translate into shareholder value. A substantial majority of retirees and active employees creaging on dividends and stock price appreciation for their retirement security.

The argument is that because employees are now also shareholders who will benefit from efficiency-enhancing plant closings and layoffs, they would support these value-creating actions. The most frequent suggestion is that employees be granted meaningful stakes in the company’s stock.

The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. Selected pages Title Page. In many cases these employees have developed highly specialized, firm-specific rppaport that have substantial value to their employers but less value to other organizations.

Thanks for telling us about the problem. During the summer InvestingByTheBooks will review some older books that we never got around to writing about although we think they are important.

While shareholders subsidized customers for a time, all stakeholders — including shareholders — became the ultimate losers. This interference with market forces has led to less competitive, high-cost companies and unemployment rates more than twice those experienced in this country.

Moreover the size of the targets continues to become larger. There are no discussion topics on this book yet. In a world in which principals e.


In Robert Monks and Nell Minow founded LENS, a vreating exclusively devoted to investing in “companies with strong underlying values, but whose performance lags due to lack of focus by the management or the board. The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders.

Alex rated it it was amazing Aug 21, Hardcoverpages. While the corporate downsizing that began in the s continues, there is also an impressive number of jobs being created in the overall economy.

In other parts of the world, such as the European continent, there is increasing political tension between the shareholder value business practices required in a competitive global market and the long-standing tradition of social welfare.

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

Alfred Rappaport – Creating Shareholder Value

This view further recognizes that a company’s long-term destiny sharehoolder on a financial relationship with each stakeholder that has an interest in the company. The shareholder value approach presented here has been widely embraced by publicly traded as well as sharfholder held companies worldwide. The takeover movement demonstrated little tolerance for managements not attentive to shareholder value. None of them have the democratic freedom as shareholders do to buy or sell their shares.

Read, highlight, and take notes, across web, tablet, and phone. Not Karl Marx rated it liked it Jun 28, Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical Michael is the author of Think Twice: Aug 20, InvestingByTheBooks. President, Baxter International, Inc Dr. Be the first to ask a question about Creating Shareholder Value.

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.