Value: The Four Cornerstones of Corporate Finance
John Wiley & Sons, 2010 | Tim Koller, Richard Dobbs, Bill Huyett
It's surprising how often executives and boards make decisions that defy their own intuition about what creates lasting shareholder value. Market pressure, new financial engineering techniques, and misconceptions dressed as conventional wisdom all conspire against them.
In Value: The Four Cornerstones of Corporate Finance, McKinsey authors provide a clear view into what drives corporate value creation—and what doesn't—offering CEOs and other senior executives a stable basis for making sound, courageous, and sometimes unpopular strategic and financial decisions, especially in the face of flawed thinking.
Value draws on findings from the definitive reference on corporate finance and value creation, McKinsey's 800-plus page Valuation: Measuring and Managing the Value of Companies. That book is now in its sixth edition, having sold more than 500,000 copies in 10 languages. But McKinsey saw the need for a much shorter, crisper work that would make the cornerstones more accessible to executives, board members, and managers across the entire spectrum of a corporation.
Value is a 250-page guide that helps business leaders navigate strategy formulation, business portfolio configuration, and decisions about mergers and acquisitions. Value also covers a range of other important topics related to understanding the stock market, investor behavior, the effect of economic conditions on corporate performance, risk assessment, earnings management, and investor communications.