Defining Key Factors to Sustain Maximum Shareholder Value

Julia Bistrova ； Natalja Lace

《Journal of Financial Studies & Research》 2012卷 (2012/01) Pp. e1-14

https://doi.org/10.5171/2012.391928

並列摘要

Frequent accounting frauds, research and development cost cuts, agency problem-these factors tend to lead to short-term gains, while providing eroded long-term performance to equity investors. The present study looks into the conflict between the short-term and long-term return to understand which factors can provide sustainable long-term return. Based on the content analysis of the academic literature, contemporary scientific publications and mission statements of the public companies, the authors propose hypothetical model of sustainable shareholder value. According to the model, the key elements, which achieve maximum long-term return of the company, are plausible corporate governance structure, high earnings quality, high innovative potential and optimal capital structure to ensure low cost of capital.

並列關鍵字

shareholder value ； long-term ； sustainability ； corporate governance ； capital budgeting