European Business Schools Librarian's Group

IESE Research Papers,
IESE Business School

No D/547: Shareholder value creation in Europe. Eurostoxx 50: 1997-2003

Pablo Fernandez () and Alvaro Villanueva
Additional contact information
Pablo Fernandez: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Alvaro Villanueva: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: 2003 was a good year for the shareholders of the companies in the Euro Stoxx 50: the shareholder value creation of these 50 companies was €150,016 million. The companies that created most value for their shareholder were Siemens (€18,778 million), Telefonica (15,382) and BSCH (12,443). The companies that destroyed most shareholder value were Nokia (-€12,051 million), L'Oreal (-8,089) and Ahold (-5,427). None of the Spanish companies in the Euro Stoxx 50 destroyed shareholder value in 2003. Shareholder value destruction in the three-year period 2001-2003 was €-1.75 trillion. The market value of the 50 companies was €1.65 trillion in 2003, and €1.4 trillion in 2002. We also calculate the created shareholder value of the 50 companies during the seven-year period 1997-2003. Siemens was the top shareholder value creator and Nokia the top shareholder value destroyer during the seven-year period. A portfolio long in the companies that entered the index and short in the companies that abandoned the index had on average a 6% return in the 20 days prior to the index recomposition and a 7% return in the 20 days after the index recomposition. In 2003, the Euro Stoxx 50 was much more volatile than the S&P 500 or the Dow Jones.

Keywords: shareholder value creation; created shareholder value; shareholder value added; shareholder return; required return equity

JEL-codes: G12; G31; M21

26 pages, March 12, 2004

Full text files

DI-0547-E.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Noelia Romero ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 15:47:28.