External measures of manager’s success to create shareholder value
External value measures are the favorite tools of modern investors and managers to assess current and prospective company’s ability to achieve the goal of maximizing shareholder value. They provide a market assessment of intrinsic value of a company, and management’s performance and strategy. The aim of this paper is to examine the applicability of some external value measures for assessing the success of management to create shareholder value. The paper points out that managers can only partially affect the market share price, hence the amount of these measures. Therefore, a particular problem is to determine the part of shareholder value, which was created thanks to management of a company.