European Management Journal
BP Amoco: Integrating Competitive and Financial Strategy. Part II: Financial Strategy and Valuation Measurement [статья]
Опубликовано на портале: 21-06-2006Paul Stonham European Management Journal. 2000. Vol. 18. No. 5.
Part Two of this Case Study of BP Amoco examines the role of finance and financial strategy in BP Amoco between 1990 and 2000 to see where and how far they were supportive and complementary to competitive strategies pursued by the company's senior managers, and if they were ever pro-active. Models of value creation by Damodaran and Rappaport are considered as generic background and the relationship between financial strategies and performance and competitive strategies examined by using a sample of ratios suggested by McKenzie. Part Two concludes with valuation of BP Amoco, applying several metrics: total returns, asset value, earnings multiples and discounted cash flows (specifically, economic value added)
Control Systems in Multibusiness Companies: From Performance Management to Strategic Management [статья]
Опубликовано на портале: 21-06-2006Fredrik Nilsson, Nils-Goran Olve European Management Journal. 2001. Vol. 19. No. 4. P. 344-358.
This article discusses the role of control systems in multibusiness companies. The focus is on formulation and implementation of corporate and business unit strategies. Three widely used categories of control models are discussed: (1) models for performance management, (2) models for value-based management, and (3) models for strategic management. The discussion is based upon central normative texts and examples from applications in Nordic companies. The description and discussion of the control models and their features should facilitate decision-making on the design and use of control systems in multibusiness companies.
Indicators of Successful Companies [статья]
Опубликовано на портале: 21-06-2006Robert Johnson, Luc Soenen European Management Journal. 2003. Vol. 21. No. 3. P. 364-369 .
Using monthly Compustat data for 478 companies covering the period 1982–1998, we investigate which factors discriminate between financially successful and less successful companies. Financial success is measured using three different methods, i.e., the Sharpe ratio, Jensen’s alpha, and EVA. We consider a total of 10 different company specific characteristics as potential indicators of superior performance. A binary logit model is applied to quantify the relationship between the individual firm characteristics and the probability that a particular measure of success will be greater or lower than the average for all firms considered. We also calculate the percentage correct prediction by the model for each measure of success. We find that especially large profitable firms with efficient working capital management and a certain degree of uniqueness regarding their business are the most successful companies.