A New Paradigm for Managing Shareholder Value
A staggering proportion of enterprise value does not depend on current operations, but rather on expectations concerning growth opportunities-what Accenture calls future value. Much of that future value depends, in turn, not on the resources (assets) that traditional accounting practice handles well-i.e. the monetary and physical assets-but on the resources it hardly handles at all-such as, intangible and intellectual capital. Many of the most successful … [ Read more ]
Content: Article | Authors: Göran Roos, John J. Ballow, Michael J. Molnar, Roland Burgman | Source: Accenture | Subjects: Finance, Strategy
New Concepts in Value-Based Management: TRS Mapping and Total Economic Profit
Most company executives have an explicit goal for increasing returns to their shareholders. However, while many companies focus on current operations metrics, such as earnings per share, net income, and economic profit, these often only have a modest impact on shareholder value. This research note introduces several new concepts to help executives in achieving their ultimate objective of increasing shareholder return, including the Accenture Total … [ Read more ]
Content: Article | Authors: Brian McCarthy, John J. Ballow, Michael J. Molnar | Source: Accenture | Subjects: Finance, Management