A Shareholder Value and Agency Theory Based Compensation System

Business & Finance, Finance & Investing, Banks & Banking
Cover of the book A Shareholder Value and Agency Theory Based Compensation System by Arne Wolter, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Arne Wolter ISBN: 9783638110310
Publisher: GRIN Verlag Publication: January 24, 2002
Imprint: GRIN Verlag Language: English
Author: Arne Wolter
ISBN: 9783638110310
Publisher: GRIN Verlag
Publication: January 24, 2002
Imprint: GRIN Verlag
Language: English

Diploma Thesis from the year 2000 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,0 (A), Technical University of Braunschweig (Department of Accounting/College of Business Administration), 86 entries in the bibliography, language: English, abstract: 'The fundamental goal of all business is to maximize shareholder value.' This statement has become commonplace not only in corporate America, but it is also the imperative statement of business around the world. A failure to seek to maximize shareholder value results in pressure from the board of directors and activist shareholders. The takeover movement of the latter half of the 1980s provided another powerful incentive for managers to focus on creating value. This is grounded on the fact that the only compelling takeover defense is to deliver superior shareholder value. Given the globalization of capital markets and their diminishing boundaries, economic systems will slowly run out of capital, if they are unable to create shareholder wealth and thereby attract investors. If economic systems are unable to provide superior or at least satisfying returns they will fall further and further behind in global competition and will lose employment opportunities. Thus, a value-based system grows in importance as capital becomes more mobile. Although shareholder value metrics and value-based management are widely known they are far from being universally applied. Years of restructuring and employee layoffs frequently attributed to shareholder value considerations coupled with self-interested management and shortsighted focus on current stock price has promoted frustration and uncertainty. Thus, it is critical to fully understand the shareholder value approach and its variants. Additionally, it is vital for the shareholder value approach that the objectives of the mangers and the company's shareholders are aligned and focused on delivering superior shareholder value. The relationship between manager and stockholder can best be examined by the agency theory that studies the contract between agents (e.g. managers) and principals (e.g. stockholders).3 An overview of a holistic shareholder value and agency based compensation system is the topic of this paper.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Diploma Thesis from the year 2000 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,0 (A), Technical University of Braunschweig (Department of Accounting/College of Business Administration), 86 entries in the bibliography, language: English, abstract: 'The fundamental goal of all business is to maximize shareholder value.' This statement has become commonplace not only in corporate America, but it is also the imperative statement of business around the world. A failure to seek to maximize shareholder value results in pressure from the board of directors and activist shareholders. The takeover movement of the latter half of the 1980s provided another powerful incentive for managers to focus on creating value. This is grounded on the fact that the only compelling takeover defense is to deliver superior shareholder value. Given the globalization of capital markets and their diminishing boundaries, economic systems will slowly run out of capital, if they are unable to create shareholder wealth and thereby attract investors. If economic systems are unable to provide superior or at least satisfying returns they will fall further and further behind in global competition and will lose employment opportunities. Thus, a value-based system grows in importance as capital becomes more mobile. Although shareholder value metrics and value-based management are widely known they are far from being universally applied. Years of restructuring and employee layoffs frequently attributed to shareholder value considerations coupled with self-interested management and shortsighted focus on current stock price has promoted frustration and uncertainty. Thus, it is critical to fully understand the shareholder value approach and its variants. Additionally, it is vital for the shareholder value approach that the objectives of the mangers and the company's shareholders are aligned and focused on delivering superior shareholder value. The relationship between manager and stockholder can best be examined by the agency theory that studies the contract between agents (e.g. managers) and principals (e.g. stockholders).3 An overview of a holistic shareholder value and agency based compensation system is the topic of this paper.

More books from GRIN Verlag

Cover of the book Lebanon - a state trapped in conflict by Arne Wolter
Cover of the book Lex iniusta non est lex - Ist unethisches Recht ungültiges Recht? by Arne Wolter
Cover of the book Modellierung eines 6-Gang-Schaltgetriebes mit Hilfe der Modellierungssprache Modelica by Arne Wolter
Cover of the book Der Grenzgang des Wahnsinns in Hartmanns von Aue ,,Iwein'' by Arne Wolter
Cover of the book Wettbewerbsrechtliche Schranken bei der Abwerbung von Arbeitnehmern by Arne Wolter
Cover of the book Die Einführung von DRG als innovatives Abrechnungssystem im Krankenhaus by Arne Wolter
Cover of the book Trace the evolution of the hero in L'Etranger, giving a clear picture of both starting-point and stages of his awareness, and of how they lead to his final declaration. by Arne Wolter
Cover of the book Literaturverfilmungen im Deutschunterricht. Friedrich Dürrenmatts 'Der Besuch der alten Dame' und die filmische Adaption von Nikolaus Leytner (2008) by Arne Wolter
Cover of the book Welche Identität ziehe ich heute an? Zur Identitätsproblematik im Internet by Arne Wolter
Cover of the book Wie geht Israel mit der Erfahrung des fernen Gottes um und welche Einsichten gewinnt es dabei? by Arne Wolter
Cover of the book Die Patientenverfügung. Zwischen Selbst- und Fremdbestimmung. Eine partiell philosophische Betrachtung by Arne Wolter
Cover of the book Ansätze zur gewinnorientierten Steuerung von Produktinnovationen by Arne Wolter
Cover of the book Der Aufstieg der NSDAP in Mecklenburg-Schwerin im Jahr 1932 by Arne Wolter
Cover of the book Ausdauertraining im Kindes- und Jugendalter by Arne Wolter
Cover of the book Corporate social responsibility standard - Pros and Cons by Arne Wolter
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy