Investor Expectations in Value Based Management

Translated by Klementyna Dec and Weronika Mincer

Business & Finance, Economics, Macroeconomics, Finance & Investing, Finance
Cover of the book Investor Expectations in Value Based Management by Magdalena Mikołajek-Gocejna, Springer International Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Magdalena Mikołajek-Gocejna ISBN: 9783319068473
Publisher: Springer International Publishing Publication: June 27, 2014
Imprint: Springer Language: English
Author: Magdalena Mikołajek-Gocejna
ISBN: 9783319068473
Publisher: Springer International Publishing
Publication: June 27, 2014
Imprint: Springer
Language: English

Understanding the process of shaping investor expectations is essential to describe and predict changes in the value of assets on the financial markets, especially stock prices on the capital markets and thus the value of companies listed on them. The main objective of this book is to include the investor expectations in the concept of enterprise value management and measurement of shareholders value creation. It seems that the role of expectations, as a determinant of investment decisions on the capital market, requires a deep insight and highlight the importance of managing the expectations for creating value for shareholders, in particular in the context of the financial crisis of 2007-2009. Creating value for shareholders is to overcome investor expectations for the rate of return on their initial investment. That means that managers must understand how investors build their expectations. According to studies conducted by T. Copeland and A. Dolgoff'a there is a strong and statistically significant relation between the shareholders returns and the two types of variables: changes in expectations for the future earnings and changes in the level of interference of provided information. Almost 50% of the variance of return rates can be explained by these two variables. Studies have also shown that changes in expectations for long-term profits have a significant and immediate impact on the share price. Readers of this book will be able to understand the process of investor expectation formulation, will know how to create value in response to investor expectations and how to consciously shape investor expectations in order to increase company value.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Understanding the process of shaping investor expectations is essential to describe and predict changes in the value of assets on the financial markets, especially stock prices on the capital markets and thus the value of companies listed on them. The main objective of this book is to include the investor expectations in the concept of enterprise value management and measurement of shareholders value creation. It seems that the role of expectations, as a determinant of investment decisions on the capital market, requires a deep insight and highlight the importance of managing the expectations for creating value for shareholders, in particular in the context of the financial crisis of 2007-2009. Creating value for shareholders is to overcome investor expectations for the rate of return on their initial investment. That means that managers must understand how investors build their expectations. According to studies conducted by T. Copeland and A. Dolgoff'a there is a strong and statistically significant relation between the shareholders returns and the two types of variables: changes in expectations for the future earnings and changes in the level of interference of provided information. Almost 50% of the variance of return rates can be explained by these two variables. Studies have also shown that changes in expectations for long-term profits have a significant and immediate impact on the share price. Readers of this book will be able to understand the process of investor expectation formulation, will know how to create value in response to investor expectations and how to consciously shape investor expectations in order to increase company value.

More books from Springer International Publishing

Cover of the book Decision and Inhibitory Trees and Rules for Decision Tables with Many-valued Decisions by Magdalena Mikołajek-Gocejna
Cover of the book Pragmatics and Philosophy. Connections and Ramifications by Magdalena Mikołajek-Gocejna
Cover of the book Young People and Social Control by Magdalena Mikołajek-Gocejna
Cover of the book Brainlesion: Glioma, Multiple Sclerosis, Stroke and Traumatic Brain Injuries by Magdalena Mikołajek-Gocejna
Cover of the book Magnetic Reconnection by Magdalena Mikołajek-Gocejna
Cover of the book Vestibulo-Oculomotor Research in Space by Magdalena Mikołajek-Gocejna
Cover of the book How Aspirin Entered Our Medicine Cabinet by Magdalena Mikołajek-Gocejna
Cover of the book Anticoagulation and Hemostasis in Neurosurgery by Magdalena Mikołajek-Gocejna
Cover of the book Resistance to Proteasome Inhibitors in Cancer by Magdalena Mikołajek-Gocejna
Cover of the book A Primer on the Kinematics of Discrete Elastic Rods by Magdalena Mikołajek-Gocejna
Cover of the book Neurodegenerative Disorders by Magdalena Mikołajek-Gocejna
Cover of the book Protein Homology Detection Through Alignment of Markov Random Fields by Magdalena Mikołajek-Gocejna
Cover of the book Alternative Schooling and New Education by Magdalena Mikołajek-Gocejna
Cover of the book Socioeconomic Fragmentation and Exclusion in Greece under the Crisis by Magdalena Mikołajek-Gocejna
Cover of the book A New Bio-inspired Optimization Algorithm Based on the Self-defense Mechanism of Plants in Nature by Magdalena Mikołajek-Gocejna
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy