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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Every serious ananlyst should have a firm understanding of his writings. Ryan Hanson rated it it was amazing Dec 29, BusinessWeeks Guide to the Best Business Schools highlighted Michael as one of the schools Outstanding Faculty, a distinction received by only seven professors.

VBM Thought Leader: Alfred Rappaport

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. President, Baxter International, Inc Dr. 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.

How can employee interests be aligned with shareholder interests in the face of restructuring and layoff announcements that so often trigger increases rappapport the share price?

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.

Read, highlight, and take notes, across web, tablet, and phone. What follows is sahreholder basic but thorough explanation of the 3 elements for valuing a company cash flowsrisk and the competitive advantage period. Capitalism is not en vogue in It is reasonable to expect that many corporate executives have a lower tolerance for risk.


Some economists fear that a significant correction in vapue stock market could induce a “loss-of-wealth effect,” reduce consumer spending, and trigger a recession.

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.

If the company invests in a risky project, stockholders can always balance this risk against other risks in their presumably diversified portfolios.

Managers compete for positions both within and outside of the firm.

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

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

Siro Gutierrez rated it it was amazing Jul 30, Michael is the author of Think Twice: The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. The question here is whether these measures are linked reliably to the market price of the company’s shares. First, movements in a company’s stock price may well be greatly influenced by factors beyond management control such as the overall state of the economy and stock market.

John rated it really liked it Mar 01, 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.


The tradeoff is a 10 percent reduction now or a possible loss of jobs for many more if not all employees in the near sharholder. Not Karl Marx rated it liked it Jun 28, While the corporate downsizing that began in the s continues, there is also an impressive number of jobs being created in the overall economy. Readers will be particularly interested in Rappaport’s answers to three management performance evaluation questions: The second factor likely to influence management to adopt a shareholder orientation is compensation tied to shareholder return performance.

A business that provides more value than customers are willing to pay for is hardly competitive — and may not even be viable.

Creating Shareholder Value | Book by Alfred Rappaport | Official Publisher Page | Simon & Schuster

fappaport By some estimates, personal stock holdings and retirement plans account for over 75 percent of Fortune company shares.

The most direct means of linking top management’s interests with those of shareholders is to base compensation, and particularly the incentive portion, on market returns realized by shareholders. The most frequent suggestion is that employees be granted meaningful stakes in the company’s stock. Sanjay Bakshi rated it it was amazing Feb 06, Rqppaport still is no free lunch.