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Suggests that in many companies that have adopted value‐based management, there is a need to shift the focus of management attention from the measurement of value, to the creation of wealth. Argues that shareholder wealth creation is a creative endeavour on the part of the management and employees of a business – and that wealth will only be created for shareholders if management delivers financial performance that exceeds market expectations. This requires the successful implementation of higher value strategies developed from new ideas – not simply the adoption of value‐based measurement and incentive systems.

The purpose of this paper is to examine the impact of employee ownership (EO) on the creation of shareholders’ wealth in companies in Cameroon.

The methodological approach adopted is hypothetical-deductive. The sample includes 89 companies, of which 31 practiced EO policy for at least ten years. Information used come from secondary data collected over the period 2008–2013 at the National Statistical Institute of Cameroon. These data were analyzed through a time series cross-sectional regression, corrected for any latent heteroskedasticity and serial auto-correlation.

The paper finds that the average level for participation of employee in the capital is 7.4 percent and the average wealth creation of shareholders is 26 percent of invested equity. However, this average rate of creation of shareholders’ wealth is higher in companies with EO (45 percent) than in conventional firms (16 percent). For the results of model estimates, the percentage of capital held by employees affect positively and significantly at 1 percent the return on equity. This study concludes that EO is a lever for creation of shareholders’ wealth in companies in Cameroon.

Findings of this research can serve as framework for reflection by politicians, managers and business leaders as they will have a strategic management tool capable of improving the social climate in companies and also promoting shareholders’ wealth creation. It is a formula that would allow them combining economic and social realities of organizations.

No similar review has been done before in Africa in general and Cameroon in particular. Study was carried out in a context where financial market is not developed.

The purpose of this research is to study the impact of divestitures on shareholder wealth. This study covers selloffs of publicly traded companies in Germany, Austria and Switzerland (DACH region) during the period 2002–2018. It aims to understand the overall effect of selloffs on shareholder wealth as well as the impact of important influencing factors.

This study is part of capital market studies which investigate shareholder wealth effects (abnormal returns) using event study methodology. To determine the significance of abnormal returns, a standardized cross-sectional test as suggested by Boehmer et al. (1991) was applied. The sample consists of 393 selloffs of publicly traded companies with a deal value of at least EUR 10m.

The findings confirm the overall positive impact of selloffs on shareholder wealth. The average abnormal return on the announcement day of the sample companies amounts to 1.33%. The type of buyer, the relative size of the transaction as well as the financial situation of the seller in particular seem to influence abnormal returns positively.

This study investigates shareholder wealth creation through selloffs in the DACH region, a largely neglected region in divestiture research, but now very relevant due to increasing pressure of active foreign investors. Sophisticated statistical methods were used to generate robust findings, which are in line with the results of similar studies for the US and the UK.

Superior firms are those which create shareholder wealth. The most direct way to measure shareholder wealth is by examining the worth of dividends plus share‐price appreciation. The authors contend that the companies chosen as excellent by Peters and Waterman, in their book, In Search of Excellence, fail to show superior shareholder wealth creation.

This paper aims to empirically analyze the success of European bank mergers and acquisitions (M&As) by an analysis of the shareholder value implications of stock market reactions to announced and canceled M&As in the period from 1999 to 2015.

The analysis of a sample of 467 announced and 54 canceled European bank M&As is conducted using event study methodology. The determinants of the shareholder value creations in M&A are observed in cross-sectional regressions. The likelihood of M&As being canceled is estimated in logit regressions.

The paper finds that European bank M&As have not been successful in terms of shareholder value creation for acquiring banks, whereas targets experienced significant value gains. Abnormal returns for bidders and targets exhibit the same characteristics upon the announcement of M&As that are canceled at a later date, whereas the results for transaction cancelations deviate. Targets experience negative abnormal returns at a larger size than upon the transaction announcement. The findings for bidders are striking, as they destroy shareholder value upon the transaction cancelation, also, consequently they suffer twice. In particular, banks with higher profitability, higher efficiency and lower liquidity experience negative abnormal returns around the announcement dates. Negative abnormal returns prior to the transaction announcement and provision for loan losses increase significantly the likelihood of M&A cancelation.

This paper contributes to the literature expanding existing analyses to the shareholder value implications of canceled European bank M&As in a 17-year long time period. The findings reveal the destructive characteristics of canceled bank M&As and provide innovative insights into European capital market reaction to canceled M&As.

With increasing pressure on firms to deliver shareholder value, there has been a renewed emphasis on devising measures of corporate financial performance and incentive compensation plans that encourage managers to increase shareholder wealth. One professedly recent innovation in the field of internal and external performance measurement is a trade‐marked variant of residual income known as economic value‐added (EVA). This paper attempts to provide a synoptic survey of EVA's conceptual underpinnings and the comparatively few empirical analyses of value‐added performance measures. Special attention is given to the GAAP‐related accounting adjustments involved in EVA‐type calculations.

The purpose of this paper is to analyze the short‐ and long‐term wealth effects of domestic and cross‐border acquisition announcements of banks in Latin American.

This study uses the event study methodology to investigate the short‐term wealth effects of 94 bidding and 24 target banks between 1995 and 2011. Additionally, a buy‐and‐hold abnormal return analysis of 91 acquiring institutions is conducted to study the long‐term wealth effects and a cross‐sectional regression analysis identifies some key drivers of successful M&As.

This paper provides evidence of significant positive stock market reactions for bidders and targets. These results may indicate that in contrast to prior empirical findings in less dynamic banking markets, Latin America is still a region of attractive consolidation conditions.

Since data was not available for all Latin America countries, the results may lack generalizability. Therefore, researchers are encouraged to use an expanded data set to further test the empirical results of this paper.

Especially in light of the positive long‐term stock performance, bank mergers and acquisitions in Latin America should not simply be seen as a short‐term investment but rather as a long‐term commitment.

To the best knowledge of the authors, this is the first paper to provide an integrated analysis of the short‐ and long‐term wealth effects of bank M&As in Latin America.

The main aim of this paper is to examine the claim that economic value added (EVA) advocates its superiority over the traditional accounting-based financial performance measures, i.e. profit after tax (PAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE) and return on investment (ROI) in the Indian manufacturing sector and at the same time, give empirical facts. It also tests and examines the information content of various performance measures and their relationship with stock returns.

The paper uses the sample of 534 Indian manufacturing companies from the Bombay Stock Exchange (BSE) during the period 2000–2018. Multiple regression models are applied to examine the information content of EVA and traditional performance measures in explaining shareholders’ returns.

Relative information content tests revealed that traditional accounting-based measures such as EPS, ROE and ROA performed better than EVA in explaining the returns of Indian manufacturing companies. Incremental information content of EVA adds little contribution to information content above traditional performance measures. The claim of superiority of EVA over accounting-based measures in association with shareholder returns is proved invalid in Indian manufacturing companies.

This study concludes that EVA has no superiority over traditional accounting-based financial performance measures in explaining stock returns of Indian manufacturing companies. To achieve heftiness in outcomes, panel data are tested by using Breusch–Pagan–Godfrey (BPG) test for heteroskedasticity, Hausman’s test for fixed and random effect, variance inflation factor (VIF) test for multicollinearity and Durbin–Watson test for autocorrelation.

The purpose of this paper is to examine the generational differences among publicly traded family firms in regards to value creation and value appropriation in the innovation process by drawing upon the knowledge-based view (KBV) and family business literature with a focus on socioemotional wealth perspective.

The authors tests the hypotheses via longitudinal regression analyses based on 285 yearly cross-firm S & P 500 firm observations.

First, the authors found that family ownership with second or later generation’s majority exhibits lower levels of value creation capabilities compared to non-family firms, whereas there is no difference between those of the firms with family ownership with a first generation’s majority and non-family firms. Second, the authors also found that family owned firms with a first generation’s majority have higher value appropriation abilities compared to nonfamily firms, while there is no significant difference in value appropriation between the later generation family firms and non-family firms.

The study help scholars, family business members, and investors better understand family involvement, and how it impacts firm performance through value creation and value appropriation.

The paper contributes to the family business, innovation, and KBV literature in several ways. While previous family business studies drawing upon resource-based view and KBV often focus on the value creation in family governance, the authors investigate both value creation and value appropriation phases of innovation process.

The paper's aim is to analyze excess returns generated by Canadian sell‐offs and their links to changes in firms' internal capital allocation efficiency to test the efficiency of internal capital markets after assets divestitures.

This study investigates the relationship between the level of the excess returns subsequent to sell‐offs and changes in the capital allocated through internal capital markets. The authors measure excess returns by calculating buy‐and‐hold abnormal (BHAR) returns up to three years after divestitures and test whether changes in value are related to changes in investment efficiency. The paper uses the relative value added by allocation (RVA) as developed by Rajan et al. to measure the variation in allocational efficiency of the internal capital market.

The study reveals that on average assets divestitures enable Canadian firms to keep up with the performance of their peers of the same industrial sector during the long‐run post divestiture period. A closer look at the results shows that the variation of long‐run post divestitures performance among Canadian firms is significantly and positively linked to changes in the allocational efficiency of the internal capital markets. These results suggest that dismantling some parts of the internal capital market does lead to improvements in firm value in the long run.

The sample is limited to a group of firms that sell off a portion of their assets. Further research could be conducted to determine whether other divestiture methods (spin‐off, sell‐off or equity carve‐out) have any impact on internal capital allocation efficiency and long run financial performance.

The paper adds to other studies examining the source of gains from divestitures by documenting the effects of changes in internal capital allocation efficiency on the creation of long‐term shareholder wealth.