Further, Rappaport presents provocative new insights on shareholder value of his business classic, Creating Shareholder Value, Alfred Rappaport. It’s become fashionable to blame the pursuit of shareholder value for the ills besetting corporate America: managers and investors obsessed with next quarter’s. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport.

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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.

Setting aside for the moment shareholder interests, do the 10 percent of employees facing layoffs merit a higher priority than the remaining employees? In this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns.

Thanks for telling us about the problem. It is invariably invoked in annual reports, press releases, meetings with financial analysts, and management speeches.

Add to Cart Add to Cart. Tender offers have become a commonly employed means of transferring corporate control. The same crwating that just a few years ago were lambasting CEOs for underperforming against foreign competitors are now criticizing CEOs for downsizing to improve competitiveness. This emphasis on long-term cash flow is the essence of the shareholder value approach.

Michael joined CS in as a packaged food industry analyst. Government regulation that presumably “helps” companies to act in the social interest invariably leads to even greater employee insecurity.

Creating Shareholder Value

The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders.


Patrick Voigt rated it liked it Oct 24, Privatization of Social Security is a complex and politically sensitive issue that will take some time to resolve. BusinessWeeks Guide to the Best Business Schools highlighted Michael as one of the schools Outstanding Faculty, a distinction received by only seven professors. By clicking ‘Sign me up’ I acknowledge that I have read and agree to the privacy policy and terms creatig use.

Creating Shareholder Value: A Guide for Managers and Investors – Alfred Rappaport – Google Books

While conflicts between customer value and shareholder interests can be quantified and appropriately resolved by sound shareholder value analysis, conflicts between employee and shareholder rapapport pose a substantially more difficult challenge.

Suppliers and bondholders seek payment when their financial claims fall due. Be the first to ask a question about Creating Creatign 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.

Investment Strategist at Credit Suisse. Shareholder Value and Corporate Purpose. It would, however, be a profound error to view increases in a company’s value as a concern just for shareholders.

Dat Dinh quang rated it it was amazing Feb 19, Steve McBride rated it it was ok Aug 25, Most executives and public policymakers recognize that increases in stock price reflects improvements in productivity and competitiveness, which benefit everyone with a stake in the company and the overall economy.

A Guide for Managers and Investors. Enlightened self-interest dictates that shareholders and other stakeholders actively engage in a partnership of value creation. It is precisely this casualness toward shareholder interests that precipitated the s takeovers with all their unpleasant and largely avoidable consequences to many employees and communities.

Such imposed costs invariably will be passed on to consumers by way of higher prices, to employees as lower wages, or to shareholders as lower returns. For example, retailing establishments, particularly large department stores sitting on valuable downtown real estate, missed the opportunity to sell the real estate and redeploy the cash to value-creating growth or, in the absence of profitable investment opportunities, distribute the cash to shareholders.


Managers, like other people, act in their self-interest. Lists with This Book.

Creating Shareholder Value: A Guide for Managers and Investors

Want to Read saving…. Readers will be particularly interested in Rappaport’s answers to three management performance evaluation questions: The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. Wallace’s quality program significantly increased on-time deliveries as well as its market share.

Capitalism is not en vogue in Ray Bonneau rated it really liked it Aug 09, The takeover movement demonstrated little tolerance for managements not attentive to shareholder value. Economic rationality dictates that stock ownership by management motivates executives to identify more closely with the shareholders’ economic interests.

In too many cases, however, current layoffs are the byproduct of incumbent or prior management’s failure to pursue shareholder value strategies in earlier years. In many cases these employees have developed highly specialized, firm-specific skills that have substantial value to their employers but less value to other organizations.

He is also affiliated with the Santa Fe Institute, a leading center for multi-disciplinary research in complex systems theory, and is on the board of directors of Sermo, an online community for physicians. 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.