Analysis of Value Based Management and its Prevalence in the Swiss Market Index Companies on-hand from the 2012 Annual Reports

Abstract

As global capital markets become more competitive, the importance to align business strategy with the interests of shareholders expands. The past century has not only seen an increase in larger institutional shareholders but also an increase in differing management styles and approaches to create value for a company. In many cases, these approaches have failed when unclear performance targets were set and the underlying goal of value creation was not supported by a VBM approach. It is unclear how prevalent the use of VBM is among the SMI companies and what role this will play in the future.