A Study on the Integrated Approach of Shareholder Value Analysis

Inhaltsangabe:Introduction:The credit crunch and the subsequent global financial crisis in 2007 shattered the trust among private as well as corporate investors.Keeping in mind that the majority of corporate capital in the UK is raised through equity provided by private as well as institutional shareholders, even the whole national economy began to tumble.How long will the recession last, what impact will it have on the real economy and is there a chance for businesses to recover and most importantly rebuilt trust among the banking sector were the questions that not only managers and chief executive officers but especially shareholders had to face.Now, four years after the genesis of the financial crisis, the trust in the markets has not been completely re-established. The question arises what shareholder wealth dedication can expect from a company in the UK market environment.This study focuses on corporate performance and the deriving degree of shareholder value by analysing three business sectors whereby for each industry sector two representative stock listed companies for a shareholder value analysis were selected:1) The IT and Communication sectorRepresented by: Vodafone Group Plc and British Telecom Group Plc2) The Oil industryRepresented by: Royal Dutch Shell Plc and British Petroleum Plc3) The Banking sectorRepresented by: Royal Bank of Scotland Plc and Barclays PlcThe author applied the following six financial models as indicators of a shareholder value orientated business-running including:1) Price/ Earnings Ratio2) Discounted Cash Flow Model3) Dividend Valuation Model4) Economic Value Added5) Market Capitalization6) Capital Asset Pricing ModelThose models have been evaluated in accordance to their practical relevance in the real world and in respect to their informative value when it comes to estimating financial performance under the premise of shareholder value creation.Inhaltsverzeichnis:Table of Contents:AcknowledgementIAbstractIIITable of ContentsIVTable of FiguresVIIList of AppendicesVIIIList of AbbreviationsVIIChapter 11Introduction1Chapter 232.0Methodology32.1Definition32.2Approaches32.3Applied Approach32.4Time Horizons42.5Research Techniques43.6Research Limitations4Chapter 353.0Literature Review53.1The financial market53.1.1Providers of Finance - an international mapping53.1.2The financial market73.2Corporate Objectives7Maximization of […]