Value based management : case studies on value creation | |
| Author | Sanjay Chaudhary |
| Call Number | AIT Thesis no. SM-96-3 |
| Subject(s) | Value analysis (Cost control) Industrial management |
| Note | A thesis submitted in partial fulfillment of the requirement for the degree of Master of Business Administration. |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. SM-96-3 |
| Abstract | This thesis demonstrate that systematic thinking about methods for creating shareholder wealth can have a significant payoff for a firm 's shareholders. In the initial part an framework for value based management is proposed and explained. Later an attempt is made to demonstrate the effect of management actions on security valuation. The case studies establish a link between c01porate strategy, Investment, operations and financing to value creation achieved through the consistent increase in stock price. The measures or value drivers having potential to enhancing market value like operating profit margin, investment rate etc. are identified and an attempt is made to establish a link between them and shareholder value. The research concludes that managers who focus on market value and long term cash flows, ultimately are rewarded with by higher share prices. For shareholder value creation, the c01porate rate of return on strategies must be at level consistent with the present market price of company's stock. The recommendations are made in order to define business profitability in terms shareholders wealth and long term prospects considerations of investor with an eye on cash flows. It is shown that adoption of value management perspective, results in better decision making, transparent and accurate tradeoffs, regardless of social context since any stakeholders claim can be valued |
| Year | 1996 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. SM-96-3 |
| Type | Thesis |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration in Management of Technology (Publication code = SM) |
| Chairperson(s) | Gupta, Jyoti P. |
| Examination Committee(s) | Pandey, I. M.;Swierczek, F. W. |
| Degree | Thesis (M.B.A.) - Asian Institute of Technology, 1996 |