Value-based Management (VBM) is an approach to corporate governance that aims at the long-term maximization of the total value of a company. By focusing on measurable performance indicators and forward-looking capital market expectations, VBM is to prevent selfish or short-sighted actions, e.g.,...

In this study, we explore the drivers of total shareholder returns (TSR) in commercial banks, and investigate whether banks subscribing to Value-based Management (VBM) outperform the non-adopters in terms of TSR. We estimate a TSR model using data from 132 listed commercial European and North...