In this thesis it is recognised that marketing has a dual role to satisfy both customer and shareholder objectives. The issue of shareholder value creation of marketing is an important and immediate agenda for marketing executives, management and academics. To date, marketers have not been able to adequately quantify and measure shareholder value creation through marketing assets and marketing expenditure. This has led to a dilution of marketing power and influence in the boardroom with management tending to treat marketing as discretionary expenditure and not as an asset. Academics have responded with conceptual models that relate marketing assets back to shareholder value, generally through cash flow or sales models. The creation of shareholder value through marketing assets and expenditure is then conceptualised and tested empirically. The conceptual model builds on the theory of agency and incomplete markets setting to illustrate the flow effects through marketing assets to shareholder value. The conceptual model also demonstrates that marketing expenditure can have stock and/or flow impacts on shareholder value. Flow effects are indirect effects that are mediated through sales, cash flows, and earnings and can be either temporary or longer term. It is concluded that in listed markets stock prices are the general surrogate for shareholder value, and risk adjusted earnings are the appropriate surrogate in non-listed markets. The thesis then empirically illustrates and tests the relationships between marketing communications expenditure on two data sets representing firms in listed and non-listed settings. The empirical results reveal that marketing expenditure does play an important role in the creation of shareholder value and that stock and flow effects are both present. Knowledge of the various empirical impacts from marketing across firm size, industry and listed and non-listed market settings observed in this thesis should prove highly valuable for marketers and managers. Finally, a conceptual understanding by marketers of the financial metrics that are required to be influenced in order to increase shareholder equity will provide greater clout in negotiations with management and boards of directors.

<p><strong>Bakgrund:</strong> Konflikterna mellan ägarnas och företagsledningens intressen har varit ett aktuellt ämne länge och vi befinner oss nu i en ny fas som kännetecknas av en tydlig betoning på att företaget i första hand måste drivas i ägarnas intresse. En effekt av detta är att utformningen av bonusprogram till högsta ledningen i företagen har fått stort utrymme i media och ifrågasatts under en längre tid men dock blivit mer påtaglig i början av 2009. Kritiska röster har höjts om utformningen av bonusprogrammen och vilka prestationer det egentligen är som belönas.</p><p><strong>Syfte: </strong>Syftet med uppsatsen är att beskriva hur bonusprogrammen för verkställande direktörer i företag noterade på Stockholmsbörsen är utformade. Vi kommer även analysera om dessa program har skapat värde för aktieägarna i form av utdelning och aktievärde. Utifrån detta kommer vi lyfta fram de kriterier vi anser är viktigast för att skapa värde vid utformandet av bonusprogram för VD.</p><p><strong>Genomförande: </strong>För att uppfylla studiens syfte genomfördes undersökningen som en kvantitativ studie med hjälp av sekundärdata. Det empiriska materialet har sedan analyserat med hjälp av befintliga teorier inom styrning.</p><p><strong>Resultat:</strong> Största delen av företagen använder kombination av kortsiktiga och långsiktiga bonusprogram för att motivera, behålla och rekrytera en kompetent ledning. För att mäta prestationer används huvudsakligen redovisningsbaserade mått men även marknadsbaserade mått förekommer. Vår studie pekar på att det föreligger ett positivt samband mellan tilldelning av aktier, som belöning, och värdeskapande.</p> / <p><strong>Background:</strong> The conflicts between shareholders and managers interests have been a current topic for a long time and we are now in a new phase that are recognized by a clear emphasis that an organization have to be run in the shareholders interests. An effect of this is that the design of incentive programs for top management have gotten large space in media and has been questioned during a long time but has become more tangible in the beginning of 2009. Critical voices have been raised about the design of incentive programs and what types of performance actually are rewarded.</p><p><strong>Aim:</strong> The aim of this thesis is to describe how incentive programs for CEO in companies listed on Stockholm Stock Exchange are designed. We will also analyze if these programs has created value for shareholders in form of dividends and stock value. Based on this we will highlight what we consider are the most important criteria’s to create value when designing an incentive program for CEO.</p><p><strong>Implementation:</strong> To fulfill the thesis aim the survey was performed as a quantitative study based on secondary data. The empirical material has then been analyzed whit the help of existing theory’s within management.</p><p><strong>Result:</strong> Majority of the companies uses a combination between short-term and long-term incentive programs to motivate, preserve and recruit a competent management. To measure performance accounting based measures are mainly used but market based measures are also used. Our study indicates that there are a positive connection between handing out stocks, as a reward, and value creation.</p>

<p>Bakgrund: Alla företag utsätts för risk och en bransch med mycket stor riskexponering är flygbolagsbranschen. Hur risken än hanteras innebär den alltid en kostnad och för att aktieägarvärdet ska bli så högt som möjligt gäller det att minimera denna kostnad. Vilka huvudsakliga risker försäkrar sig passagerarflygbolagen mot? Vilka är motiven till att de försäkrar sig? Är hanteringen av försäkringsbara risker i överensstämmelse med ett aktieägarperspektiv?</p><p>Syfte: Syftet med denna uppsats är att utifrån finansiell teori analysera passagerarflygbolagens användning av försäkring som riskhanteringsmetod. Analysen sker utifrån ett aktieägarperspektiv.</p><p>Genomförande: Studien bygger på intervjuer genomförda med försäkringsansvarige på fem olika flygbolag. Dessutom har kompletterande intervjuer genomförts i informationssyfte.</p><p>Resultat: Vi har funnit att flygbolagen i huvudsak försäkrar sig mot risker som medför stora förlustkostnader. En viktig anledning till att de försäkrar sig är krav från externa parter. Även risken för insolvens har betydelse vid flygbolagens försäkringsbeslut. Studiens resultat visar att flygbolagens hantering av försäkringsbara risker i hög grad överensstämmer med ett aktieägarperspektiv.</p> / <p>Background: All companies are exposed to risk and one example of an industry with a high level of risk exposure is the commercial airline industry. Regardless of how the risk is handled it always involves a cost. To maximize the shareholder value it is necessary to minimize this cost. What are the main risks that the airlines reduce using insurance? What are the main reasons as to why they use insurance? Are the insureable risks managed in a way that corresponds to a shareholder perspective?</p><p>Purpose: The purpose of this study is to analyze the use of insurance as a risk management method in the commercial airline industry, using financial theory.</p><p>Research method: We have performed interviews with risk management responsible executives at five different airlines and we have also gathered data by doing two additional interviews.</p><p>Result: The study shows that airlines primarily insure risks that may lead to great economic losses. Also insurance is required by airline regulating authorities and other external parties. The risk for insolvency is yet another reason to purchase insurance. We have also shown, in this study that the management of insurable risks to a high degree corresponds to shareholder perspectives.</p>

The primary goal of a publicly traded company is to maximise the wealth of its shareholders. This implies that the management of the firm, as agents of the owners, has to manage the firm in such a manner as to create value from every decision taken. Value-based management (VBM) is a management strategy aimed at achieving shareholder wealth creation and is based on the effective management of a set of internal value drivers to maximise wealth creation. The primary objective of the current study is to investigate the quantification of the relationship between internal value drivers and shareholder wealth creation in the Mining sector of JSE listed companies in South Africa. In order to achieve this, the internal value drivers were identified from literature, the necessary financial data was collected and the value drivers as well as actual shareholder wealth were quantified. Revenue growth, operating profitability, capital requirements and weighted average cost of capital (WACC) were identified as the value drivers while total shareholder return (TSR) was identified as the actual shareholder wealth creator. For the purpose of the current study, WACC was excluded from the analysis. By application of linear regression, it was found that revenue growth and operating profitability have a positive, statistically significant effect of TSR. After analysing the effect size, it is however concluded that the effect is not practically significant. These findings concur with similar research in the field of VBM. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2009.

Abstract Problem: The problem of this thesis involves the controversy that the implementation of poison pills generates. The conflict amongst various stakeholders that are affected directly or indirectly by the implementation of the poison pill also contributes significantly to the problem of this thesis. Purpose: The purpose of this thesis is to investigate and compare the benefits of the poison pill adoption on shareholder and management interests. We also seek to evaluate arguments for and against pill adoption, and determine if these arguments are valid in view of facts established from our study. Conclusions: Our study in this thesis has brought us to five conclusions about the poison pill policy in fulfillment of the purpose. We state in our conclusion that arguments for and against the poison pill can both be validated depending on the case, we also state that a general conclusion cannot be drawn as to the negative or positive effect of the poison pill on stakeholders. We proceed to argue that the pill is a very effective fighting toll in the current business world and state that more should be done to regulate pill implementation. We finish up our conclusion by identifying what appears to be an inverse relationship between management and shareholders benefits from the implementation of the pill. Originality: The uniqueness of our study resides in the theoretical framework that is developed from two prevailing hypotheses in the academic research of the poison pill. The previous studies either take on the management entrenchment hypothesis (MEH) or the shareholder interest hypothesis (SIH). However, we have combined the elements of both hypotheses and jointly revealed the advantages and disadvantages of the pill adoption for both management and shareholders via our original management shareholder benefits comparison matrix.

In the first essay, "Why Won't You Forgive Me? Evidence of a Financial Misreporting Stigma in Bank Loan Pricing," we examine the relation between bank loan pricing and intentional financial misreporting. Firms that misreport financial information pay greater spreads on their bank loans for five years following their restatements, whether benchmarked against their pre-restatement loans or similar loans made to matched non-misreporting firms. Misreporting firms that promptly replace certain parties who are potentially related to the misreporting see their spreads fall to benchmark levels within three years following restatement. Large fractions of firms, however, do not promptly replace the potentially related parties and continue to pay premiums over benchmark spread levels for five years following restatement. The results suggest that misreporting creates a long-lasting and costly stigma, but that certain actions can reduce the duration of the stigma. In the second essay, "Can Shareholder-Creditor Conflicts Explain Weak Governance? Evidence from the Value of Cash Holdings," we look into whether shareholder-creditor conflicts generate costs large enough to prevent improvements in governance. If firms choose to remain weakly governed, some cost must prevent improvements. We address our research question by estimating the value of cash as a function of governance, leverage, and the interaction of the two. We find that governance increases the value of cash, but that leverage reduces the gain from strong governance. However, the magnitudes are far too small to explain why weak governance firms remain weakly governed. Our estimates suggest more than 80 percent of weakly governed firms would increase the value of their cash by improving governance. In fact, half of weakly governed firms would increase the value of their cash holdings by $0.35 or more per dollar held by improving governance. Our focus on cash holdings does not seem to drive our results, nor do endogenous governance choices or nonlinearities reverse our conclusions.

Bakgrund: Konflikterna mellan ägarnas och företagsledningens intressen har varit ett aktuellt ämne länge och vi befinner oss nu i en ny fas som kännetecknas av en tydlig betoning på att företaget i första hand måste drivas i ägarnas intresse. En effekt av detta är att utformningen av bonusprogram till högsta ledningen i företagen har fått stort utrymme i media och ifrågasatts under en längre tid men dock blivit mer påtaglig i början av 2009. Kritiska röster har höjts om utformningen av bonusprogrammen och vilka prestationer det egentligen är som belönas. Syfte: Syftet med uppsatsen är att beskriva hur bonusprogrammen för verkställande direktörer i företag noterade på Stockholmsbörsen är utformade. Vi kommer även analysera om dessa program har skapat värde för aktieägarna i form av utdelning och aktievärde. Utifrån detta kommer vi lyfta fram de kriterier vi anser är viktigast för att skapa värde vid utformandet av bonusprogram för VD. Genomförande: För att uppfylla studiens syfte genomfördes undersökningen som en kvantitativ studie med hjälp av sekundärdata. Det empiriska materialet har sedan analyserat med hjälp av befintliga teorier inom styrning. Resultat: Största delen av företagen använder kombination av kortsiktiga och långsiktiga bonusprogram för att motivera, behålla och rekrytera en kompetent ledning. För att mäta prestationer används huvudsakligen redovisningsbaserade mått men även marknadsbaserade mått förekommer. Vår studie pekar på att det föreligger ett positivt samband mellan tilldelning av aktier, som belöning, och värdeskapande. / Background: The conflicts between shareholders and managers interests have been a current topic for a long time and we are now in a new phase that are recognized by a clear emphasis that an organization have to be run in the shareholders interests. An effect of this is that the design of incentive programs for top management have gotten large space in media and has been questioned during a long time but has become more tangible in the beginning of 2009. Critical voices have been raised about the design of incentive programs and what types of performance actually are rewarded. Aim: The aim of this thesis is to describe how incentive programs for CEO in companies listed on Stockholm Stock Exchange are designed. We will also analyze if these programs has created value for shareholders in form of dividends and stock value. Based on this we will highlight what we consider are the most important criteria’s to create value when designing an incentive program for CEO. Implementation: To fulfill the thesis aim the survey was performed as a quantitative study based on secondary data. The empirical material has then been analyzed whit the help of existing theory’s within management. Result: Majority of the companies uses a combination between short-term and long-term incentive programs to motivate, preserve and recruit a competent management. To measure performance accounting based measures are mainly used but market based measures are also used. Our study indicates that there are a positive connection between handing out stocks, as a reward, and value creation.

Bakgrund:                       I takt med att företagen mer och mer har börjat fokusera på aktieägarvärde och ägarstyrning har nya normativa ekonomistyrningsfunktioner som värdebaserad styrning vuxit fram. Därmed är det intressant att undersöka hur svenska familjeföretag av olika karaktärer upplever denna trend och huruvida det överensstämmer med ett aktieägarorienterat synsätt.  Syfte:                                  Syftet med uppsatsen är att undersöka och kartlägga vilken uppfattning svenska noterade och onoterade familjeföretag har på värdebaserad styrning och dess överensstämmelse med ett aktieägarorienterat synsätt. Vidare syftar uppsatsen att beskriva och förklara huruvida sådana verksamheter upplever att värdebaserad styrning kan användas som ett styrningsverktyg för att definiera och säkerställa aktieägarvärde. Metod: Jag har genomfört sex stycken intervjustudier med en abduktiv forskningsansats. Det empiriska materialet grundar sig huvudsakligen på data från både personliga intervjuer och telefonintervjuer men även sekundär data från hemsidor, årsredovisningar och bekräftade teorier. Slutsatser:                         Studiens noterade och onoterade familjeföretag upplever att deras värdeskapande processer stämmer väl överens med ett aktieägarorienterat synsätt. De påvisar alla att både finansiella och icke-finansiella målsättningar symboliserar verksamheternas aktieägarvärde vilket överensstämmer med varje familjs grundläggande värderingar och intressen för respektive verksamhet. Studiens fallföretag har vidare ingen konkret definition utav aktieägarvärde, verksamheterna är medvetna om värdet men använder inte begreppet i den dagliga verksamheten. Aktieägarvärde uppfattas vidare vara en integrerad målsättning i varje familjeföretag värdeskapande process. / Background:   As more and more companies have begun to focus on shareholder value and corporate governance, new normative financial functions as value-based management have emerged. Thus, it is interesting to investigate how Swedish family businesses of different characters experiencing this trend and whether it is consistent with a shareholder-oriented approach. Purpose:                             The purpose of this paper is to examine and identify the perception of Swedish listed and unlisted family business, on value-based management and its consistency with a shareholder-oriented approach. Furthermore, the study aims to describe and explain whether such business perceives that value-based management can be used as a management tool to define and ensure shareholder value. Method:                             I have completed six interview studies with an abductive research approach. The empirical material is mainly based on data from both personal interviews and telephone interviews but also secondary data from websites, annual reports and confirmed theories. Conclusions:                     The listed and unlisted family firms in this study perceive that their value creation processes is consistent with a shareholder-oriented approach. All the family firms demonstrate that both financial and non-financial objectives symbolize activities which are shareholder value consistent with the family’s basic values ​​and interests. Furthermore has each and every firm no concrete definition of shareholder value, businesses are aware of the value but they are not using the concept in their daily operations. Shareholder value is further perceived as an integrated goal in the firm’s value creation process.

Prior research on conservative accounting and bondholder-shareholder conflict show that firms with higher degree of conservatism experience less austere conflict and lower cost of debt. However, since the implementation of IFRS in 2005, conservatism has been widely reduced in favor of fair value principles. This study sets out to examine if accounting conservatism still mitigates the conflict and reduces cost of debt. We regress two measures of conservatism on three conflict proxies and debt cost, respectively, for firms on the Norwegian market. Our results support the conclusion that conservative accounting mitigates the bondholder-shareholder conflict even after the introduction of IFRS, but we find no significant evidence that bondholders reward high level of conservatism with lower cost of debt.

Since 1987, the United Nations has promoted sustainable development as a form of development that takes into account and balances economic, ecological, and social considerations. To achieve sustainability, the United Nations has repeatedly required private businesses—among other actors—to assume a broader set of social responsibilities. This is though highly contested in the corporate world and among economists. To throw light on this debate, the aim of this paper is to assess whether contemporary theories of business ethics are compatible with the Brundtland notion of sustainable development. For that reason, the responsibilities for sustainable development that corporations should assume are deduced from the Brundtland Report; followed by an introduction to the field of business ethics and a detailed discussion of major contemporary theories reflecting instrumental, integrative, political, and ethical approaches to corporate social responsibility. By comparing the different responsibilities the compatibility of sustainability with each discussed theory on business ethics is assessed. This paper finds that the compatibility is low for instrumental theories, moderate for integrative and political theories, and high for ethical theories on business ethics. Nevertheless, ethical theories assume a normative perspective on sustainable development, idealizing how corporations ought to act in a sustainable world. In reality, the world is far from sustainability. This is not least a result of national economic and legal policies maintaining conditions and structures that continue to promote globalization and free markets. It is argued that the combination of fierce competition and corporations’ opportunities to take advantage of weak legal systems in emerging and developing countries leads firms to further subscribe to an instrumental approach to business ethics. It is suggested that international politics develop a global legal framework based on sustainable development that provides competitive conditions at arm’s length. At the same time, recent management research is presented that suggests that corporations can promote sustainability if they contribute solutions to the social and environmental problems of our time. The pursuit of sustainability, therefore, results more from business opportunities than from any ethical convictions.