Colabora: Universitat Autònoma de Barcelona. Departament d'
Economia de l'Empresa
Autor/es: Hecking, Stephan;
Publica: Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa
Resumen : Does shareholder value orientation lead to shareholder value creation? This article proposes
methods to quantify both, shareholder value orientation and shareholder value creation.
Through the application of these models it is possible to quantify both dimensions and examine
statistically in how far shareholder value orientation explains shareholder value creation.
The scoring model developed in this paper allows quantifying the orientation of managers towards
the objective to maximize wealth of shareholders. The method evaluates information
that comes from the companies and scores the value orientation in a scale from 0 to 10 points.
Analytically the variable value orientation is operationalized expressing it as the general attitude of managers toward the objective of value creation, investment policy and behavior,
flexibility and further eight value drivers. The value creation model works with market data
such as stock prices and dividend payments. Both methods where applied to a sample of 38
blue chip companies: 32 firms belonged to the share index IBEX 35 on July 1st, 1999, one
company represents the “new economy” listed in the Spanish New Market as per July 1st, 2001, and 5 European multinational groups formed part of the EuroStoxx 50 index also on July 1st, 2001. The research period comprised the financial years 1998, 1999, and 2000. A regression analysis showed that between 15.9% and 23.4% of shareholder value creation can be
explained by shareholder value orientation.
