The objective of this study is to evaluate the value drivers that drive the value of companies, as reflected in the share-prices. Through this study, the aim is to draw conclusions on the aspects that drive the share-price of companies. A detailed literature study was performed on the value-creation process that takes place in a company. The literature study has a significant focus on Value-Based Management and the elements that should be considered when evaluating the manner in which companies create shareholder value through the operational activities that are performed. Through applying the principles of value-based management, the management of companies should maximise the value-created for shareholders by utilising company resources in the most effective and efficient way possible. Valuebased management should not be seen as a once-of initiative, but should be ingrained in the day-to-day operating and management activities of companies. The objective of applying value based management principles in a company should be to enhance the value of financial assets through the optimisation of the real assets of the company. Value is created in a company when the company can maintain a return on capital that is greater than the cost of capital. Through the literature study several value-drivers were identified that influence the shareholder value-creation process and that should be managed optimally. These value-drivers have been identified to be (1) sales growth, (2) cash profit margin - earnings before interest, tax, depreciation and amortisation (EBITDA), (3) cash tax rate, (4) working capital, (5) capital expenditure, (6) WACC- the risk and inflation adjusted weighted average cost of capital, and (7) the competitive advantage period. The competitive advantage period is defined as the time during which a company has a positive net present value when discounted at the WACC. Any actions that the management of a company can take to optimise these value-drivers will have a positive effect on the value created for shareholders. The link between shareholder value-creation and share-price was investigated in the literature study. It was found that different factors influence share prices and that some have nothing to do with the company itself, but more with investor sentiment about the economy as a whole and other socio-political factors. The empirical study was based on analysing key value-drivers and financial ratios that were identified during the literature study, in order to establish the relationship between company value-creation and the share-price. The data sample that was used in the empirical study consisted of 55 publicly listed companies that had a net asset value of one billion rand (R1, 000,000,000) or more in 1998. This data sample parameter was chosen in order to consider companies in the empirical study that have significant market presence in the respective industries, sectors and sub-sectors. The time horizon of the empirical study was over a 1 0-year period, from 1998 to 2007. The relationship that exists between the dependent variables of (1) Average Share Price (ASP) and (2) Year-End Share Price (YESP) and the independent variables of (1) net assets, (2) turnover, (3) trading profit, (4) operating profit, (5) profit before interest and tax, (6) Net Operating Profit After Tax (NOPAT), (7) retained profits, (8) free cash flow, (9) Economic Value-Added (EVA), (1 0) Earnings Per Share (EPS), (11) Cash Flow Per Share (CFPS), (12) the price earnings ratio, (13) operating assets, (14) Return On Assets (ROA), and (15) Return On Equity (ROE) were analysed during the empirical study. These dependent and independent variables were chosen based on the insights gained through the literature study and was identified as appropriate to formulate conclusions on the relationship that exists between shareholder value-creation and share-price. The distributions of the above-mentioned variables are discussed in detail and distribution figures are provided to contextualise the spread of the variables and provide background on the data that was used in the empirical study. Although the study of the variables was conducted over a 1 0-year period, from 1998 to 2007, distribution figures for the years 1998 and 2007, are depicted and discussed in order to provide a comparison of the changes that took place over the 1 0-year period. Due to the nature of the variables analysed during the empirical study, the Spearman Rank Correlation Coefficient is used to measure the relationship that exists between the dependent and independent variables. The Spearman Rank Coefficient is a factor model that explains complex phenomena through a small number of basic causes or factors. Given the relative large number of shares available on the share market, the estimation of dependent, share-price variables cannot be performed without simplification to dimensionality, therefore the use of the Spearman Rank Coefficient. The coefficient of correlation between the dependent and independent variables was calculated for the each of the years over the 1 0-year period and the applicability to explain the relationship between shareholder value-creation and share-price was analysed. Through the statistical analyses and the interpretation of the results, it was concluded that earnings per share and cash flow per share are the most appropriate indicators for estimating the relationship that exists between shareholder value-creation and the share-price as reflected on the share market. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2010.

The objective of this study is to evaluate the value drivers that drive the value of companies, as reflected in the share-prices. Through this study, the aim is to draw conclusions on the aspects that drive the share-price of companies. A detailed literature study was performed on the value-creation process that takes place in a company. The literature study has a significant focus on Value-Based Management and the elements that should be considered when evaluating the manner in which companies create shareholder value through the operational activities that are performed. Through applying the principles of value-based management, the management of companies should maximise the value-created for shareholders by utilising company resources in the most effective and efficient way possible. Valuebased management should not be seen as a once-of initiative, but should be ingrained in the day-to-day operating and management activities of companies. The objective of applying value based management principles in a company should be to enhance the value of financial assets through the optimisation of the real assets of the company. Value is created in a company when the company can maintain a return on capital that is greater than the cost of capital. Through the literature study several value-drivers were identified that influence the shareholder value-creation process and that should be managed optimally. These value-drivers have been identified to be (1) sales growth, (2) cash profit margin - earnings before interest, tax, depreciation and amortisation (EBITDA), (3) cash tax rate, (4) working capital, (5) capital expenditure, (6) WACC- the risk and inflation adjusted weighted average cost of capital, and (7) the competitive advantage period. The competitive advantage period is defined as the time during which a company has a positive net present value when discounted at the WACC. Any actions that the management of a company can take to optimise these value-drivers will have a positive effect on the value created for shareholders. The link between shareholder value-creation and share-price was investigated in the literature study. It was found that different factors influence share prices and that some have nothing to do with the company itself, but more with investor sentiment about the economy as a whole and other socio-political factors. The empirical study was based on analysing key value-drivers and financial ratios that were identified during the literature study, in order to establish the relationship between company value-creation and the share-price. The data sample that was used in the empirical study consisted of 55 publicly listed companies that had a net asset value of one billion rand (R1, 000,000,000) or more in 1998. This data sample parameter was chosen in order to consider companies in the empirical study that have significant market presence in the respective industries, sectors and sub-sectors. The time horizon of the empirical study was over a 1 0-year period, from 1998 to 2007. The relationship that exists between the dependent variables of (1) Average Share Price (ASP) and (2) Year-End Share Price (YESP) and the independent variables of (1) net assets, (2) turnover, (3) trading profit, (4) operating profit, (5) profit before interest and tax, (6) Net Operating Profit After Tax (NOPAT), (7) retained profits, (8) free cash flow, (9) Economic Value-Added (EVA), (1 0) Earnings Per Share (EPS), (11) Cash Flow Per Share (CFPS), (12) the price earnings ratio, (13) operating assets, (14) Return On Assets (ROA), and (15) Return On Equity (ROE) were analysed during the empirical study. These dependent and independent variables were chosen based on the insights gained through the literature study and was identified as appropriate to formulate conclusions on the relationship that exists between shareholder value-creation and share-price. The distributions of the above-mentioned variables are discussed in detail and distribution figures are provided to contextualise the spread of the variables and provide background on the data that was used in the empirical study. Although the study of the variables was conducted over a 1 0-year period, from 1998 to 2007, distribution figures for the years 1998 and 2007, are depicted and discussed in order to provide a comparison of the changes that took place over the 1 0-year period. Due to the nature of the variables analysed during the empirical study, the Spearman Rank Correlation Coefficient is used to measure the relationship that exists between the dependent and independent variables. The Spearman Rank Coefficient is a factor model that explains complex phenomena through a small number of basic causes or factors. Given the relative large number of shares available on the share market, the estimation of dependent, share-price variables cannot be performed without simplification to dimensionality, therefore the use of the Spearman Rank Coefficient. The coefficient of correlation between the dependent and independent variables was calculated for the each of the years over the 1 0-year period and the applicability to explain the relationship between shareholder value-creation and share-price was analysed. Through the statistical analyses and the interpretation of the results, it was concluded that earnings per share and cash flow per share are the most appropriate indicators for estimating the relationship that exists between shareholder value-creation and the share-price as reflected on the share market. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2010.

Efter den relativt stora nedgången på börsen, som skedde i februari 2020 till följd av Covid-19pandemin, hade börsen en mycket stark uppgång mellan mars 2020 och november 2021. Närinflationen ökade under 2021 började fler prognostisera att det framgent skulle komma räntehöjningar.Detta, i kombination med andra faktorer, som exempelvis Rysslands invasion av Ukraina i början av2022, ledde till att många investerare blev passiva och skeptiska till hur aktiemarknaden skulleutvecklas. Från november 2021 till november 2022 föll det breda Stockholmsindexet, OMXStockholm PI, med 22 procent. Fastighetsindex OMX Stockholm Real Estate PI, hade en betydligtstörre nedgång på 44 procent. Syftet med studien var att undersöka vilka fastighetsbolag vars aktiekurser hade störst avvikelse frånfastighetsindex under tidsperioden november 2021 till november 2022, och varför. Studien harbaserats på både en kvalitativ och kvantitativ undersökning. I den kvalitativa undersökningen har 6mycket relevanta personer intervjuats. Den kvantitativa delen består av en sektorjämförelse samtdjupgående analyser av de 10 fastighetsbolag som avvek mest från index under den valda perioden. Resultatet visar att samtliga fastighetsbolag hade en negativ utveckling i dess aktiekurser mellannovember 2021 och november 2022. En orsak varför fastighetsbolagen påverkats mer negativt, jämförtmed andra sektorer, är att fastighetsbolag generellt använder högre nivåer av hävstång vilket blir merkostsamt i sämre finansiella klimat med högre räntor. Det finns många individuella faktorer somförklarar utvecklingen för varje specifikt bolag, dock har fyra faktorer konstaterats inneha en extra storbetydelse för hur aktiemarknaden har reagerat på de individuella bolagen. Detta har varitägarstrukturen, kapitalstrukturen, fastighetsportföljen och värderingen på bolaget vid ingången tillperioden. Det har varit viktigt att ha en stark finansiell position, både för bolaget men också dess ägare. Detta ärett mönster som har kunnat tydas via nyheter samt intervjuer. Gällande fastighetsportfölj haraktiemarknaden, bland de bolag som analyserats, handlat ner de fastighetsbolag som haft majoritetenav sin fastighetsportfölj bestående av bostäder och samhällsfastigheter. Bolagen som hade den störstanedgången i dess aktiekurser mellan november 2021 och november 2022 hade generellt högrevärderingar vid ingången till perioden. Detta berodde på att aktiemarknaden, vid de förändrademarknadsförutsättningarna, skiftade i vad som premierades. / After the relatively large drop in the stock market in February 2020 due to the COVID-19 pandemic,the stock market experienced a very strong recovery between March 2020 and November 2021. Asinflation increased in 2021, more people started to forecast future interest rate increases. This,combined with other factors, such as Russia's invasion of Ukraine in early 2022, led many investors tobecome passive and skeptical about the performance of the stock market. From November 2021 toNovember 2022, the broad Stockholm index, OMX Stockholm PI, fell by 22 percent. The real estateindex, OMX Stockholm Real Estate PI, had a much larger decline of 44 percent. The purpose of the study was to investigate which real estate companies whose share prices had thegreatest deviation from the real estate index during the period November 2021 to November 2022, andwhy. The study has been based on both a qualitative and quantitative survey. In the qualitativeresearch, 6 highly relevant persons have been interviewed. The quantitative part consists of a sectorcomparison and in-depth analysis of the 10 real estate companies that deviated the most from the indexduring the selected period. The result shows that all real estate companies had a negative development in their share pricesbetween November 2021 and November 2022. One reason why real estate companies have been morenegatively affected, compared to other sectors, is that real estate companies generally use higher levelsof leverage, which becomes more costly in poorer financial climates with higher interest rates. Whilethere are many individual factors that explain the performance of each specific company, four factorshave been found to be particularly important in determining how the stock market has reacted toindividual companies. These have been the ownership structure, the capital structure, the real estateportfolio and the valuation of the company at the beginning of the period. It has been important to have a strong financial position, both for the company and its owners. This isa pattern that has been evident from news reports and interviews. Regarding the real estate portfolio,among the companies analyzed, the stock market has traded down the real estate companies that hadthe majority of their real estate portfolio consisting of housing and community properties. Thecompanies that experienced the largest decline in their share prices between November 2021 andNovember 2022 generally had higher valuations at the beginning of the period. This was because thestock market, in the context of changing market conditions, shifted in what was rewarded.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: This event study examines the effect that Black Economic Empowerment (BEE) announcements have on a companies' share price. The average mean return model is applied to study a sample of companies from the Financial Mail Top 200 Empowerment Companies list, 2007. The mean price change observed in a 7-day window around the event announcement is found to be significant relative to the calculated critical value. Results of the test statistic calculated relative to the probability shows that at a p-value of 0,00113, the result is significant and the null hypothesis is rejected at a 95% confidence level. This result of this study supports the fact that markets react positively to the announcements of BEE events. / AFRIKAANSE OPSOMMING: Hierdie studie ondersoek die verhouding tussen die verandering van 'n maatskappy se aandele prys wanneer hierdie maatskappy 'n aankondiging maak oor 'n Swart Ekonomiese Transaksie (SET). Die Financial Mail Top 200 Empowerment Companies 2007 lys is gebruik om maatskappye te kies vir die studie. Die gemiddelde verandering in aandele prys in a 7-dag venster rondom die SET aankondiging blyk merkwaardig te wees wanneer met 'n berekende kritiese waarde vergelyk word. Die toets statistiek bewys dat met 'n p-waarde van 0,00113 daar met 95% sekerheid die nul hipotese kan verwerp. Die resultaat van hierdie studie ondersteun die feit dat markte positief reageer teenoor maatskappye wat nuus oor SET transaksies aankondig.

Numerous value relevance investigations use the Ohlson (1995) model to empirically explore the value relevance of accounting variables such as earnings and goodwill amortisation by employing equity price as the dependent variable, but do not incorporate the most recent prior period’s equity price as an additional explanatory variable. The Ohlson (1995) model and the efficient market literature indicate that, since share prices represent the present value of future permanent earnings in an efficient market, the most recent prior period’s equity price should be a crucial variable for explaining the current price in value relevance models. This thesis therefore outlines how the Ohlson (1995) model incorporates the most recent prior period’s price as a potentially important value relevant explanatory variable, and reformulates the Ohlson (1995) model to demonstrate how the empirical specification of value relevance regression models can be greatly improved by including the most recent prior period’s price as an additional explanatory variable. We revisit the Jennings, LeClere, and Thompson (2001) empirical specification used to study whether goodwill amortisation is value relevant and potentially informative with respect to future earnings to illustrate the improvement to the Ohlson (1995) value relevance model empirical specification. When the model specification is improved by including the most recent prior period’s price as an additional explanatory variable, trailing earnings are shown, using time series, cross-sectional, and returns-based analysis, to be at best marginally value relevant when empirically explaining share prices in value relevance regression models. The thesis also indicates that goodwill amortisation should not be deducted from earnings in accounting statements because the presence of goodwill amortisation is significantly positively (not negatively) related to equity prices. This effect is eliminated when the most recent prior period’s price is included as an additional explanatory variable in the regression analysis, thus indicating that goodwill amortisation information as well as trailing earnings information have already been incorporated into the most recent prior period’s price. The thesis further indicates that value relevance studies that use the Ohlson (1995) model should use, for econometric reasons, change in price or else returns, not the price level, as the dependent variable. When returns are used to test the value relevance of goodwill amortisation, firms that report positive goodwill amortization actually have higher subsequent returns, a result that could possibly be due to the fact that growing firms tend to possess goodwill when they use acquisitions to expand. Results obtained when using returns to test whether goodwill amortisation is value relevant therefore extend the existing literature, since the prevailing expectation in the accounting literature is that goodwill amortization either represents a reduction in the value of goodwill over time or is not value relevant.

In late 2019, the spread of the coronavirus SARS-CoV-2 (Severe acute respiratory syndrome coronavirus 2) began. The viral disease, also known as covid-19, started spreading from China to large parts of the world in early 2020, resulting in a large number of cases, deaths, as well as major impacts on the economy of nations, organizations, and individuals alike. In order to limit the spread of the virus, several pharmaceutical companies, including Pfizer and Moderna, initiated a vaccine development. This process led pharmaceutical companies to communicat ea large amount of corporate news to investors, among other stakeholders. Previous research has shown how the stock market responds to corporate news. However, prior to this study, a lack of research on how the stock market behaves in relation to corporate news announced by companies under difficult global conditions was identified. The aim of this study is to investigate the stock market's reaction to press releases by Moderna and Pfizer regarding their vaccine development for covid-19. The methods used to study the subject are based on analysis of historical share price data and the calculation of abnormal returns. The results have to some extent indicated that selected press releases have played a significant role as an influencer in relation to investor sentiment and the stock market’s behavior. In terms of the result as a whole, the number of significant days is not sufficient to support the alternative hypothesis. Market reactions in the share prices were identified on the dates surrounding the press releases regarding the vaccine-development, but since only 22 percent of the abnormal yield was significant, the result did not appear to be aligned with the alternative hypothesis. / Under slutet av år 2019 började spridningen av coronaviruset SARS-CoV-2 (Severe acute respiratory syndrome coronavirus 2). Virussjukdomen, i folkmun känd som covid-19, började under år 2020 spridas från Kina till stora delar av övriga världen, vilket har resulterat i ett stort antal insjuknade, dödsfall och även en påverkan på såväl nationers som organisationers och individers ekonomi. För att begränsa spridningen av viruset påbörjade ett flertal läkemedelsbolag en vaccinframtagning. Denna process ledde till att läkemedelsbolagen kommunicerade en stor mängd bolagsnyheter till omvärlden, däribland investerare. Tidigare forskning har visat hur aktiemarknaden svarat på bolagsnyheter, men inför denna studie identifierades en brist på forskning kring hur aktiemarknaden agerar i förhållande till bolagsnyheter under extrema världssituationer likt coronaviruspandemin. Syftet med denna studie är att undersöka marknadens reaktion till följd av pressmeddelanden från företagen Moderna och Pfizer rörande vaccinutvecklingen för covid-19. Reaktionen studeras med hjälp av historiska aktiekursdata och beräkning av onormal avkastning. Resultaten har till en viss del indikerat på att utvalda pressmeddelanden har spelat en signifikant roll som påverkande faktor gentemot aktiemarknaden. Sett till resultatet i sin helhet är antalet signifikanta dagar inte tillräckligt för att utgöra stöd till alternativhypotesen. Marknadsreaktioner kunde identifieras till följd av pressmeddelanden om vaccinutvecklingen, men eftersom enbart 22 procent av den onormala avkastningen var signifikant så föreföll inte resultatet i linje med alternativhypotesen.

大型股過去一直被認為平均報酬率低於小型股，但如果從個股來看，不少大型股的績效並不會比指數差。考慮到一般非專業投資人在投資股票時，選擇大型股還是比小型股容易，本論文試圖建構一套在實務上較可行的大型個股選股策略—選擇市值第二大的股票，並定期調整個股。我們以美股標準普爾500指數中前兩大市值的股票，分為兩種投資組合做比較，結果發現，市值最大的股票不容易創造超額報酬，市值第二大的股票，反而締造極佳的超額報酬，此現象在過去3年、5年、10年，尤其較過去20年更為明顯。原因在於市值排名第二的股票，多半屬於排名仍在持續上升的成長股，這些個股基本面尚未到達頂點，故股價還會反應一段時間的基本面利多，採取類似動能策略(Momentum Strategy)的方法，報酬率容易超越指數；市值最大者則因為基本面普遍伴隨市值排名已經到頂，加上投資人對於排名第一的股票，多半易產生定錨效應(Anchoring Effect)，即認為股價可能已經反應其該有的價值，較難創造超額報酬，傾向賣出。故同樣投資大型股，選擇市值第二名的股票會優於第一名。 / According to The Size Effect Theory, small cap securities generally generate greater returns than those of large cap companies. However, this trend has involved into the difficulties of stock picking due to the large number of small caps. In this paper I propose a strategy against the size effect theory, “Second is Better”, to pick the second largest market value security as the single stock investment. I examine the performances of the No.1 and the No.2 largest market cap stocks in the S&P500 and apply a 6-month rebalance to construct two different portfolios, which is similar to the concept of Momentum Strategy that buy the past winners and sell the past losers. I find the No.2 stock outperforms than No.1 stock and generate amazing excess returns in the near mid-to-long-term periods. Because No.1 stocks are more likely to experience Momentum Crash than No.2 stocks due to investor’s anchoring bias as they believe the No.1 stock might have been peaked. No.2 stocks are usually in the growing stages that many investors believe the 2nd largest caps still yet to peak during market value expansion.