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To what extent and how has financialisation changed the task of management?

What is shareholder value?-its backgrouund (where and what?)

kays added value?

how has sharegholder value redefined the task of management and recalibrates what we mean by corporate success/failure?

the context of financialisation?
1.the macro conditions related to what some households do with their money?
2. a highly corporatised economy?
3.economic slowdown?

the visible results of financialisation? (norms and behaviours of firms-have they changed?)

what managements must do: managing results and relationships?

what has happened?

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FINANCIALISATION CHANGED THE TASK OF MANAGEMENT
1. The move to floating exchange rates, high interest rates and inflation focus attention on interests rates and currency management and the impact of inflation on business decisions.
2. Merger activities over the years has increased the understanding of valuation and take over tactics.
3. Technological progress in communication has led to the globalization of business.
4. Complexities in taxation and enormous growth in new financial calculations and financial databases within easy reach of every manager.
5. Deregulation makes the financial markets much more competitive for the manager.
6. The realization that there is a need to view the all decision making withing a strategic framework.
SHAREHOLDER VALUE
1. Shareholder value is usually subject to limitations, like profit retention should always be at least three times greater than dividends.
2. Borrowing levels should not exceed 50 percent of the total capital employed.
3. Profitability or return on capital employed should be at least 18% of the capitial employed.
4. That the interests of the other stakeholders like trade creditors, ...

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