The Shareholder Value Chain: Values, Vision and Shareholder Value Creation

Abstract

Business now almost universally accepts that the primary management task is value creation. The impact of leaders’, directors' and executives' personal values in the value creation process has been largely ignored in the literature. This paper seeks to redress the current situation by proposing that the needs and values of leaders and executives drive the vision, goals and strategies to create shareholder value. Yet, while most directors and senior managers will be at ease with pushing the organisation farther and faster in the creation of new methods to create more shareholder value, this is creating dis-ease amongst other directors, executives and the organisations' operator who have different values. This disease potentially stymies leaders' and boards' ability to create more value for shareholders. By understanding the values dynamic and asking different questions, boards and leaders can motivate the culture to create more value. The objective of this paper is to build on previous executive values research by examining the impact of how the values of one executive value group translate into methods of creating shareholder value and proposing the linkage between leaders values and shareholder value. First, a theoretical background is provided. Next, the results of empirical research into executive values are briefly reviewed and combined with data and insights from proprietary market research to discuss how the needs and values of one executive value group impact on strategic leadership factors driving shareholder value creation methods. This is followed by proposing a conceptual framework illustrating the linkages between leaders' values and shareholder value creation with propositions. Conclusion and implications are drawn and finally limitations and areas for further research are provided.

Personal values at work

“…The raw data were organised into specific "coding events" throughout each group's transcript, as described above. The analysis process was guided by an a priori coding informed by Lichtenstein and Dade, 2007. Coding followed the VM framework, with ID, OD, and SD each being divided into sub-categories as identified in the rubric. A "Not Applicable" (NA) code was created for those phrases that did not apply to any of the other categories.…”

Shareholder Value Disclosure Practices In India: A Content Analysis

“…Organizations now almost universally accept that the primary management task is value creation. Most directors and senior managers will be at ease with pushing the organization farther and faster in the creation of new methods to create more shareholder value (Lichtenstein & Dade, 2007).The value-based management (VBM) enables the organizations towards increasing enterprise value and thereby increase in shareholder value (Beck & Britzelmaier, 2013) (Rappaport, 2006). This shareholder value approach was conceived by (Rappaport, 2006).…”

Untitled

“…Organizations now almost universally accept that the primary management task is value creation. Most directors and senior managers will be at ease with pushing the organization farther and faster in the creation of new methods to create more shareholder value (Lichtenstein & Dade, 2007).The value-based management (VBM) enables the organizations towards increasing enterprise value and thereby increase in shareholder value (Beck & Britzelmaier, 2013) (Rappaport, 2006).…”