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Our analysis suggests that the CSR aspects of BEE deals created value when pursued in earnest, but destroyed value otherwise.
Thus, although the globalization strategy hasn't destroyed value, it also hasn't added as much as originally envisioned.
And she reminded investors that LVMH had "destroyed value" when it lost money investing in Sephora, a cosmetics chain.
If Ace had failed to include these costs, it would have incorrectly calculated an expected value of $804,000, chosen to implement the system, and actually destroyed value.
As we now know, "performance pay" was a misnomer, an incentive for financial engineering that has destroyed value on a heroic scale.
Shire's strategy "looks OK for now," says Ronny Gal of Sanford C. Bernstein, a research firm, but "time will tell whether he created value or destroyed value".
Similar(46)
Does short-termism destroy value?
Value is being created by destroying value.
All-stock mergers tend to destroy value.
Most acquisitions destroy value for shareholders over the longer term.
Bad expectations can destroy value as easily as bad execution.
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