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Shareholder value: a European perspective

There has been a fast changing landscape in Europe and an increasing trend for European managers to focus on shareholder value. While this increased focus on shareholder value will not remove all the barriers and problems in the European context, it will lead to better utilization of capital from pension funds, and other investors, institutional or personal. As the US model has illustrated in the 1990s, the focus on shareholder value increases the size of the pie, which could then be divided between equity stockholders, senior managers, workers and other stakeholders. Despite the short-term dislocations caused by some restructuring operations such as demergers, the long-term benefits to the remaining ...

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