Case Studies in Finance: Managing for Corporate Value Creation

2002 ◽  
Author(s):  
Robert F. Bruner
Keyword(s):  
Case Studies ◽  
Value Creation ◽  
Corporate Value

CFO and finance function: what matters in value creation

2017 ◽  
Vol 13 (2) ◽  
pp. 216-238 ◽  
Author(s):  
Laura Zoni ◽  
Federico Pippo
Keyword(s):  
Case Studies ◽  
Value Creation ◽  
Organizational Context ◽  
Personal Characteristics ◽  
Generation Process ◽  
Content Type ◽  
For Profit ◽  
Industrial Companies ◽  
Patterns And Processes ◽  
Finance Function

Purpose According to the chief financial officer (CFO) of IBM Global Survey (2010), only few integrated finance organizations (IFOs) and only some CFOs’ role (Value Integrators) allow companies to generate value so as to outperform their peers. The purpose of this study is to gather additional insights on how the CFOs and finance organizations effectively promote value creation in for-profit organizations. Design/methodology/approach The authors’ study has been developed through the methodology of case studies. The method, despite its intrinsic limitations, offers a much deeper understanding of the organizational context within which value creation takes place. The authors’ analysis is based on nine selected case studies of Italian industrial companies, selected to assure comparability with the IBM sample. All companies outperform their peers. Findings The authors observed that not only IFOs and value integrator CFOs support the value generation process. The authors’ sample suggests a variety of other relevant and likely alternatives for value creation deriving from both finance functions (FFs) and the roles of CFOs. Their findings indicate that FFs adopt three distinct patterns to add value for the shareholders. The first option involves the FF taking the lead in setting a common language across functions, management processes, management and stakeholders. The second value creation pattern is when the FF establishes a strong and relevant support to business. The third option implies that the FF acts as an advisor assuring independent compliance. The authors also concluded that regardless of the CFO’s roles, influential CFOs are older, with a deep functional company and industry experience. They also observe that some of this influence derives from “proximity” to shareholders, as all the more influential CFOs sit on the Board, enjoying a closer relationship with the shareholders. Research limitations/implications This study was based on clinical cases, the findings can be generalized reliably only for the population studied here. More research is needed for further tests and explorations of these findings, especially in the area of CFO incentives and governance mechanisms. Practical implications This study supports modern advice given to organizations in terms of the array of available alternatives to promote value creation with patterns and processes within the domain of the finance organization and CFO’s personal characteristics. Social implications The paper contributes to untangle some gender issues, as the authors found that more influential CFOs are male. The authors have also contributed to explain some dynamics of the “labor” market development for finance professionals: the authors observed that the promotion for most influential CFOs comes through the ranks of a specific company, and this questions if a market really exits for such professionals in Italy, and more generally in Europe. Originality/value These results provide some useful support of prior findings and some modifications and extensions that further the authors’ understanding in this area of importance both to researchers and practitioners.

Management Commitments that Maximize Business Impact from IT

2014 ◽  
Vol 29 (2) ◽  
pp. 114-127 ◽  
Author(s):  
Anne Quaadgras ◽  
Peter Weill ◽  
Jeanne W Ross
Keyword(s):  
Financial Performance ◽  
Case Studies ◽  
Value Creation ◽  
Management Practices ◽  
Publicly Traded ◽  
Business Impact ◽  
It Value ◽  
It Capabilities ◽  
Small Set ◽  
Over Time

As digitization becomes pervasive, many organizations struggle to drive value from the growing number of IT-related opportunities. We show how the drivers of IT value creation can be framed as firm-wide commitments to a set of IT capabilities. On the basis of 20 published case studies, we identify a small set of IT decisions that organizations must make to use IT to successfully enhance their impact. We group these decisions into a framework of four commitments. Making these commitments helps organizations reinforce what really matters over time, which in turn helps focus the attention of their employees. We demonstrate, via a survey of 210 publicly traded firms, that firms which are more effective in making these four commitments have higher business impact from IT, which in turn correlates with higher financial performance. We suggest the construct of commitment is a step toward unifying the IT value literature and creating an overarching concept that brings together many of the important management practices identified in previous work.

scholarly journals Multidimensional value creation through different reverse supply chain relationships in used clothing sector

2019 ◽  
Vol 24 (6) ◽  
pp. 729-747
Author(s):  
Rudrajeet Pal ◽  
Erik Sandberg ◽  
Manoj Kumar Paras
Keyword(s):  
Supply Chain ◽  
Knowledge Sharing ◽  
Case Studies ◽  
Value Creation ◽  
Financial Incentives ◽  
Extreme Case ◽  
Relational Theory ◽  
Reverse Supply Chain ◽  
Content Type ◽  
Multidimensional Values

Purpose This paper aims to purport deeper understanding of, and instigate theoretical elaboration to, multidimensional value created through different reverse supply chain (RSC) relationships. Design/methodology/approach By capturing the relationships (and their differences) constituted and embedded in three “extreme” case studies from global used clothing supply chain, the sources of multidimensional values are explored in line with Dyer and Singh’s (1998) relational theory. Findings In the RSC, when downstream relationships are typically more opportunistic, value is created using inter-personal ways of knowledge sharing and through use of informal safeguards. In contrast, the upstream RSC relationships are more symbiotic, and value is created through more seamless (and routinized) knowledge sharing practices, and additional use of more formal transaction-specific controls or financial incentives as safeguarding instruments. Research limitations/implications The use of consolidated case studies may affect the consistency in the findings presented. Another limitation relates to deriving propositions per each source presented in relational theory. Practical implications Practitioners particularly from industries whose global RSCs include different natures of relationships and multiple value incentives can be benefited through this study. Originality/value The paper extends the original sources of value creation prescribed in relational theory by contextualizing them in RSCs. It depicts how multidimensional values are created relationally by dyadic partners as the nature of relationship differs between upstream and downstream.

scholarly journals Positive image as a key factor of increasing the enterprise's competitiveness

2020 ◽  
pp. 36-40
Author(s):  
Svitlana FAIZOVA ◽  
Olha FAIZOVA ◽  
Viktoriia HUTSALOVA
Keyword(s):  
Value Creation ◽  
Balanced Scorecard ◽  
Corporate Image ◽  
Corporate Value ◽  
Integral Index ◽  
The Balanced Scorecard ◽  
Positive Image ◽  
A Value ◽  
Future Value

The article is devoted to defining the essence and role of corporate (value) image as a factor of the value-oriented competiti-veness at the enterprise. The relevance of topic is due to growing role of intangible assets, image of the company, in the growth of its market value. Need for further research is connected with the problem of valuation of image. It is also connected with fact that in the highly concentrated basic industries of economy in Ukraine the overwhelming number of enterprises are cost oriented. Purpose of the work is to improve methodology of assessing the image of a value-oriented enterprise based on the concept of Balanced Scorecard - BSC. The system-structural analysis and the method of logical generalization were used to clarify essence and place of image in the structure of intangible assets of the enterprise, factor and economic-mathematical analysis – to form the BSC management panel and to calculate the integral index of corporate image; critical analysis - to compare alternative approaches to form a Balanced Scorecard and role of company image in the implementation of its cost growth strategy. Assessment of the corporate (value) image of a metallurgical value-oriented enterprise is implemented by the normative method of integral evaluation of the investment attractiveness of enterprises and organizations. The Balanced Scorecard - BSC concept, which is emerged as a system of estimation of the cost and efficiency of the enterprise using measuring instruments of material and intangible factors of its value creation, was used as a tool for assessing the corporate (value) image of a metallurgical value-oriented enterprise. The validity of valuing image of a value-oriented enterprise based on the BSC concept is that a positive image of an industrial enterprise produces its future value in the stock market, which allows it to gain an edge over its competitors. The authors have improved the method of estimating the image of a value-oriented enterprise, which, unlike the known ones, involves the calculation of integral index of the corporate image of enterprise on the basis of the Balanced Scorecard. The comprehensive assessment of the indicator takes into account both positive characteristics and reasoning for the choice: significant orientation on expectations of the investment community; the possibility of taking into account contribution of intellectual capital of the enterprise in the creation of its future value; simplicity of calculation and availability of indicator logic perception at all levels of management; the ability to navigate key factors of value creation and value image of the enterprise to lower levels of management. The practical value of the proposed methodology for the assessment of corporate image is to determine the strategy of its adjustment and increase the strategic competitiveness of the enterprise.

scholarly journals A LESSON IN VALUATION FROM ESTONIA: THE DIFFERENCE BETWEEN THE FUNDAMENTAL VALUE OF EQUITY UNDER DISTRIBUTED AND TRADITIONAL PROFIT TAXATION SYSTEMS

2018 ◽  
Vol 19 (0) ◽  
pp. 146-156 ◽  
Author(s):  
Mark Kantšukov ◽  
Priit Sander
Keyword(s):  
Value Creation ◽  
Income Tax ◽  
Corporate Value ◽  
Equity Value ◽  
Tax Regimes ◽  
Key Issues ◽  
Theoretical Paper ◽  
The Difference ◽  
Fundamental Value ◽  
The Relationship

Corporate value creation and management are one of the key issues for any business enterprise. A gap exists in research into the implications of the distributed profit taxation (DPT) system in Estonia for corporate value creation. Under the Estonian system of corporate taxation, companies need not pay income tax on undistributed earnings, allowing them to postpone income tax liability indeterminately. This theoretical paper compares the relationship between a company’s equity value and taxation of profits under traditional (or classical) (TPT) and DPT systems. A TPT system is a system where the amount of corporate income tax is determined by the profit the company earned during the taxation period. We show that fundamental equity value under a DPT system should be higher vis-à-vis equity value under a TPT system (ceteris paribus). To illustrate this, we use a dividend discount model and values from a hypothetical company. The equity value under DPT is also higher when financial leverage is considered. The results suggest that conventional valuation models and their inputs should be adjusted when valuing Estonian companies. Ignoring these adjustments runs the risk of undervaluing the equity of Estonian companies, as well as the equity of companies operating under similar tax regimes.

scholarly journals The Life Cycle of Corporate Social Responsibility in Agri-Food: Value Creation Models

2020 ◽  
Vol 12 (4) ◽  
pp. 1287 ◽  
Author(s):  
Concetta Nazzaro ◽  
Marcello Stanco ◽  
Giuseppe Marotta
Keyword(s):  
Corporate Social Responsibility ◽  
Life Cycle ◽  
Social Responsibility ◽  
Case Studies ◽  
Value Creation ◽  
Business Processes ◽  
Policy Makers ◽  
Food Industries ◽  
A Value ◽  
Corporate Social

This paper contributes to the theoretical debate in agri-food economics focusing on corporate social responsibility. Specifically, it aims to define an interpretative model of the processes of social responsibility and value creation in the food industry. An empirical investigation was conducted using an analysis of case studies—representative of sustainable innovation and social responsibility models—as well as in-depth interviews and focus groups with managers of food industries and the sector’s experts. The paper focuses on a topic that has yet to be analysed in agri-food economics literature: corporate social responsibility as a value-creating strategy. Further, it proposes a life cycle model of social responsibility in business processes. The study findings reveal that corporate social responsibility actions may affect the agri-food process and/or the product. Specifically, the investigated case studies reveal that the production sector in which a company operates strongly influences its orientation towards one or more corporate social responsibility dimensions. This study’s results contribute to the debate on the topic and provide useful insights for practitioners and policy-makers.

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