Quantitive Evaluation and Ranking of All Iranian Companies based on CSV Criteria

Document Type : Original Manuscript

Authors

1 saeed.agn@gmail.com

2 khalilinasr@sharif.edu

3 na.g.ali@gmail.com

Abstract

To understand why CSV often goes away and how important strategic thinking is to it, a manager must understand the relationship between competitive advantage, value creation, and business strategy. Every manager knows something about those things individually. Competitive advantage means outperforming competitors along dimensions like cost, technological capability, and acquisition of raw materials or providing superior value to customers. Value creation is the increase in shareholder value, which requires that the company earn more than its cost of capital. But not every manager understands how competitive advantage and shareholder value interact. A sound strategy generates both: for a strategy to win in the marketplace, it must create sustainable advantage; only when a strategy wins in the marketplace can it generate sustained shareholder value. In this paper, based on shareholder return for the period of 2012 to 2015 all Iranian companies, listed in Tehran Stock Exchange were ranked. Results showed that 136 companies have created value for shareholders; conversely, 43 companies have destroyed it. In the period studied, Shisheh Hamedan Co. was the leading shareholder value creator and, on the other end of the spectrum, Siman-e Shomal Co. was the top shareholder value destroyer.

Keywords

References

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Iranian journal of management sciences
Volume 12, Issue 45
May 2017
Pages 61-80

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