Shareholder Value: a Literature Review
As noted in the previous chapter, managing to create sustainable shareholder value is an important objective in European banking. While there is a substantial literature dealing with shareholder value, there remains confusion as to how to create value for shareholders and noticeable partiality among supporters of various metrics for measuring shareholder value. Resti (1999: 19) notes that ‘shareholder value in banking is becoming a sort of mot de passe, a skeleton key for making all agree, a spice to give flavour even to non-tasting projects and find the favour of all guests. Yet, despite the unavoidable banalities implied in any formulas for corporate success, the creation of shareholder value is an urgent issue in European banking.’
KeywordsCash Flow Stock Return Equity Capital Capital Asset Price Model Residual Income
Unable to display preview. Download preview PDF.