PricewaterhouseCoopers Corporate Value Report
PricewaterhouseCoopers has released its Corporate Value Report 2003, a survey of the value performance of the top 200 Australian listed entities, from the perspectives of an investor, a valuer and a manager.
The survey has revealed that while Australian capital markets performed well in comparison with global markets, ASX 200 shareholders in 2002 received less than half the returns of 2001.
Returns for 2002 were calculated at 8.1 per cent, compared with 16.7 per cent for 2001.
In terms of value for shareholders, Woolworths fared best in the survey, but the market capitalisation of 40 per cent of the ASX 200 companies fell.
The Woolworths result was due to "a balanced view of corporate performance", PwC says.
While the company’s margins and revenue growth did not make the top quartile, across-the-board value was realised on sensible commercial strategies, effective reputation management, and sound corporate governance practices.
Other companies that did not deliver had sacrificed shareholder value to a day-to-day operational focus, the survey report concludes.
PwC advises that companies are best able to build value when management understands the drivers of value performance in current markets.
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