Transcript
  • 00:00    |    
    Initial credits
  • 00:06    |    
    Introduction
  • 01:22    |    
    Quotes Abraham Lincoln
  • 01:49    |    
    Constructive criticism
  • 02:28    |    
    Variable compensation mechanism
  • 03:40    |    
    Market based incentives
    • Changes in share price actuals
    • Prices
    • Exogenous factors
    • Allocated stock options
  • 11:40    |    
    Economic Value Added (EVA)
  • 12:31    |    
    First consulting venture
  • Quotes n , Franco Modigliani and Merton Miller
  • 15:36    |    
    EVA royal mail application
  • 17:29    |    
    Middle management incentives
  • 18:43    |    
    Value creation
  • 20:29    |    
    Restructuring costs
  • 21:11    |    
    Market value as a given
  • 23:49    |    
    What happens if markets are not as efficient as they should be?
  • 25:01    |    
    Market efficiency
  • 27:18    |    
    Share price pattern
  • 30:03    |    
    How do you manage new information entering the market related to adding value?
  • 31:37    |    
    EVA anecdote
  • Government reaction
  • 36:45    |    
    Private companies
    • Capital structure
    • Business risk
  • 38:33    |    
    Bond ratings
  • 40:56    |    
    Academic experience
  • 43:22    |    
    Is valuing a bank different from a cement company?
  • 45:39    |    
    Loan anecdote
  • 47:51    |    
    Business dynamics
  • 50:08    |    
    Tax deductions
  • 52:07    |    
    Cost of equity analysis
  • 55:15    |    
    Bank capital structure
  • 57:42    |    
    EVA incentive contract
  • 01:00:43    |    
    Do you recommend a specific way of implementing EVA?
  • 01:04:41    |    
    Are there other mechanisms for creating value?
  • 01:07:46    |    
    Incentives in public utilities
  • 01:10:38    |    
    Quotes "Genesis,"
  • 01:13:21    |    
    Proposal to Universidad Francisco Marroquín
  • 01:15:30    |    
    Price determination
  • 01:16:47    |    
    Insurance companies
  • 01:18:35    |    
    Modigliani-Miller valuation model
    • Barack Obama's administration
    • Quotes "The World's Gone Mad,"
  • 01:25:38    |    
    Incentive contract design
  • 01:27:04    |    
    Question and answer period
    • If the markets are efficient, does that mean that EVA would result in zero?
    • Company growth rate
  • 01:32:52    |    
    Final words
  • 01:33:24    |    
    Final credits


Relationship between the “Efficient Market Theory”, Performance, Incentives and Economic Value Added (EVA)

New Media  | 18 de octubre de 2011  | Vistas: 55

Most successful companies in the market use incentive programs to increase productivity and by doing so, they raise net revenue. Joel M. Stern defies the common notion of this motivational mechanism and destroys market based incentive paradigms, which -he believes- create a free rider problem. By using empiric information, Stern describes his experiences with Economic Value Added (EVA) and explains several features of this useful resource. He describes how this technique can be used -as an alternative to the mechanisms mentioned before- in different types of companies, and focuses on the dynamics of innovation and efficiency. He insists on including every person in the company, who shouldn´t be called an employee but an factor of value creation instead.




Conferencista

Joel M. Stern is the creator and developer of Economic Value…

IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín