Creating and Measuring Shareholder Value in British Corporations (PDF)

Master's Thesis from the year 2011 in the subject Business economics - Operations Research, grade: B, Oxford University, language: English, abstract: Measuring the value creation of shareholders has been the debatable issue all over the globe. It turned out critical crucial since the business firms were largely moving in creating value for shareholders. Conventional/traditional accounting methods has been criticised because of their less correlation with value creation of shareholder. Thus, modern measuring approaches are required to evaluate the value creation of shareholder. However, the shifting/moving process from the conventional measures to the modern approaches is not easily accepted. This is the reason value creation of shareholder is measured these days is of critical importance. So as to focus on this issue, this thesis provides generally how value is created for shareholder as a basis to the valuation approaches/technique being exercised for the measurement of value creation of shareholder. The empirical section of the research presented that even though the firms in this research have adopted many approaches to create value for shareholder, a slight effort has been made to assess it because most of them are even now implementing the traditional accounting methods. The rationale for this perhaps is the lacking of pressure and conservatism from shareholders and stock market. After taking notice of this we in the end recommended the firms to implement "Value Based Methods (VBM)" in order to measure value creation of shareholder because they are more practicable and trustworthy.