Redefining Shareholder Value: Demystifying the Valuation Myth

Measuring shareholder value has become crucial in the current economic environment, especially following the consistent pressure from institutional shareholders on

companies to create shareholder value in an adverse economic environment. Maximizing the company’s value will make the company less appealing to hostile takeovers.

Takeovers are a capital market mechanism designed to control the conflicts of interest between shareholders and managers of the company. In this study, the authors ex...