AqhumanAqhumanThis topic covers VBM from two angles. First we explore the external measures which are used as targets by companies for example, total shareholder return. To do this we look at the drivers of share price, with a brief review of company valuations
Next we would consider the problems with relying on an external measure and why an internal proxy is required. This leads to a discussion of economic profit and the link to total shareholder return
Finally we bring these together and examine the drivers of economic profit and therefore shareholder returns
