The ultimate test of corporate strategy, the only reliable measure, is
whether it creates economic value for shareholders. Now, in this
substantially revised and updated edition of his 1986 business classic,
"Creating Shareholder Value", Alfred Rappaport provides managers and
investors with the practical tools needed to generate superior returns.
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. Further, Rappaport presents provocative
new insights on shareholder value applications to: (1) business
planning, (2) performance evaluation, (3) executive compensation, (4)
mergers and acquisitions, (5) interpreting stock market signals, and (6)
organizational implementation. Readers will be particularly interested
in Rappaport's answers to three management performance evaluation
questions: (1) What is the most appropriate measure of performance? (2)
What is the most appropriate target level of performance? and (3) How
should rewards be linked to performance? 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.
The shareholder value approach presented here has been widely embraced
by publicly traded as well as privately held companies worldwide.
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.
