Value-Based Management and the Corporate Profit Centre

Value-based management (VBM) has been defined as a means of making explicit the link between a company’s strategic and operating decisions and their effect on shareholder returns. As such it should be the natural framework for aligning executive incentives with the interests of stock market investors (Ittner and Larcker, 2000).

While many firms have embraced the VBM phenomenon in recent years, at least in their … [ Read more ]