Business titan Jack Welch once expressed the opinion that “shareholder value is the dumbest idea in the world…Short-term profits should be allied with an increase in the long-term value of a company.” Tim Koller, Richard Dobbs and Bill Huyett of McKinsey & Company certainly agree, as they eschew corporate environments in which executives chase trendy ideas to raise share prices. The authors explain four inviolable tenets of corporate finance and teach managers how to use them to plan and implement their strategies. getAbstract recommends this robust guide to executives looking for a practical grounding on creating corporate value.
In this summary, you will learn
- What “the four cornerstones of corporate finance” entail and
- What challenges executives face in creating corporate value over the long term.
About the Authors
Tim Koller, Richard Dobbs and Bill Huyett are partners at McKinsey & Co.