Definition: is a management method, a philosophy, which involves increasing the shareholders’ equity and making it the most important business objective. This is typically achieved by a number of policies and functions. For instance, a shareholder value approach involves enhancing the business’s earnings, increasing a company’s market value, generating a sufficient amount of regular cash inflows, etc. The effectiveness of the shareholder value approach depends on the strategic decisions that the senior management makes and the results those decisions deliver.
In a Sentence:
This company’s main business philosophy is the shareholder value approach.
The return on our investments will directly influence the effectiveness of the shareholder value approach.
A shareholder value approach is common for large companies, which oftentimes helps them increase their market value.
Synonyms and related words: stakeholder value approach, shareholder, stakeholder, shareholder agreement, shareholder value