Investor Expectations in Value Based Management

Translated by Klementyna Dec and Weronika Mincer

Business & Finance, Economics, Macroeconomics, Finance & Investing, Finance
Cover of the book Investor Expectations in Value Based Management by Magdalena Mikołajek-Gocejna, Springer International Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Magdalena Mikołajek-Gocejna ISBN: 9783319068473
Publisher: Springer International Publishing Publication: June 27, 2014
Imprint: Springer Language: English
Author: Magdalena Mikołajek-Gocejna
ISBN: 9783319068473
Publisher: Springer International Publishing
Publication: June 27, 2014
Imprint: Springer
Language: English

Understanding the process of shaping investor expectations is essential to describe and predict changes in the value of assets on the financial markets, especially stock prices on the capital markets and thus the value of companies listed on them. The main objective of this book is to include the investor expectations in the concept of enterprise value management and measurement of shareholders value creation. It seems that the role of expectations, as a determinant of investment decisions on the capital market, requires a deep insight and highlight the importance of managing the expectations for creating value for shareholders, in particular in the context of the financial crisis of 2007-2009. Creating value for shareholders is to overcome investor expectations for the rate of return on their initial investment. That means that managers must understand how investors build their expectations. According to studies conducted by T. Copeland and A. Dolgoff'a there is a strong and statistically significant relation between the shareholders returns and the two types of variables: changes in expectations for the future earnings and changes in the level of interference of provided information. Almost 50% of the variance of return rates can be explained by these two variables. Studies have also shown that changes in expectations for long-term profits have a significant and immediate impact on the share price. Readers of this book will be able to understand the process of investor expectation formulation, will know how to create value in response to investor expectations and how to consciously shape investor expectations in order to increase company value.

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

Understanding the process of shaping investor expectations is essential to describe and predict changes in the value of assets on the financial markets, especially stock prices on the capital markets and thus the value of companies listed on them. The main objective of this book is to include the investor expectations in the concept of enterprise value management and measurement of shareholders value creation. It seems that the role of expectations, as a determinant of investment decisions on the capital market, requires a deep insight and highlight the importance of managing the expectations for creating value for shareholders, in particular in the context of the financial crisis of 2007-2009. Creating value for shareholders is to overcome investor expectations for the rate of return on their initial investment. That means that managers must understand how investors build their expectations. According to studies conducted by T. Copeland and A. Dolgoff'a there is a strong and statistically significant relation between the shareholders returns and the two types of variables: changes in expectations for the future earnings and changes in the level of interference of provided information. Almost 50% of the variance of return rates can be explained by these two variables. Studies have also shown that changes in expectations for long-term profits have a significant and immediate impact on the share price. Readers of this book will be able to understand the process of investor expectation formulation, will know how to create value in response to investor expectations and how to consciously shape investor expectations in order to increase company value.

More books from Springer International Publishing

Cover of the book Sensors and Instrumentation, Volume 5 by Magdalena Mikołajek-Gocejna
Cover of the book Cyber Security Cryptography and Machine Learning by Magdalena Mikołajek-Gocejna
Cover of the book Computational Probability by Magdalena Mikołajek-Gocejna
Cover of the book Uncovering Online Commenting Culture by Magdalena Mikołajek-Gocejna
Cover of the book Recent Developments in Mechatronics and Intelligent Robotics by Magdalena Mikołajek-Gocejna
Cover of the book US-Chinese Strategic Triangles by Magdalena Mikołajek-Gocejna
Cover of the book Syphilis and Subjectivity by Magdalena Mikołajek-Gocejna
Cover of the book Intelligent Transport Systems and Travel Behaviour by Magdalena Mikołajek-Gocejna
Cover of the book Rhetoric in Neoliberalism by Magdalena Mikołajek-Gocejna
Cover of the book Economic Growth in Small Open Economies by Magdalena Mikołajek-Gocejna
Cover of the book Spatial Similarity Relations in Multi-scale Map Spaces by Magdalena Mikołajek-Gocejna
Cover of the book The 2015 UK General Election and the 2016 EU Referendum by Magdalena Mikołajek-Gocejna
Cover of the book Chadwick F. Alger by Magdalena Mikołajek-Gocejna
Cover of the book Advances in Aerospace Guidance, Navigation and Control by Magdalena Mikołajek-Gocejna
Cover of the book Logic-Based Program Synthesis and Transformation by Magdalena Mikołajek-Gocejna
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