It is generally believed that in order to maximise value for shareholders, companies should strive towards maximising MVA (and not necessarily their total market value). The best way to do so is to maximise the EVA, which reflects an organisation's ability to earn returns above the cost of...

Investors who invest on the Johannesburg Securities Exchange (JSE) base their investment decisions on information obtained from the financial press, radio and television or from a broker or investment consultant. The purpose of the study is to test the hypothesis that an individual using...

This study aimed to address issues of shareholder value creation. The EVA model of value creation was used in this study as it is arguably one of the best methods to express and quantify shareholder value creation. As a starting point, EVA was quot;dissectedquot; into various building blocks or...

In determining the feasibility of projects where capital investments are concerned, various methods are used. The focus of these methods is on return per se, so it is often asked to what extent any of these methods take the risk concept into account.The main objective of this study was to...

During recent years many opportunities arose for companies because international trade restrictions were lifted. As international markets became more accessible to local manufacturers, the degree of competition increased tremendously, resulting in a revaluation of the way business is conducted...

It is widely accepted that the primary objective or goal of a firm is to maximise the shareholders' equity. While there may be legitimate differences of opinion as to whether this is the sole motivation of a firm's management, it should without a doubt be a dominant variable in management's...

The development and growth of the listed firm during the past decades caused an ever widening and more complex gap between ownership and management. Agency theory addresses this relationship between the owners (shareholders) and the custodians of their wealth, the management of the firm. If...