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Shareholder Value Creators in the S&P 500: 1991-2010

11 Pages Posted: 13 Feb 2011 Last revised: 18 Oct 2017

Pablo Fernandez

University of Navarra - IESE Business School

Javier Aguirreamalloa

IESE Business School

Luis Corres Avendaño

IESE

Date Written: January 13, 2015

Abstract

In the period 1991-2010, the S&P 500 destroyed value for the shareholders ($4.5 trillion). In 1991-1999 it created value ($5.1 trillion), but in 2000-2010 it destroyed $9.6 trillion. The market value of the S&P 500 was $2.8 trillion in 1991 and $11.4 trillion in 2010.

We also calculate the created shareholder value of the 500 companies during the 18-year period 1993-2010. The top shareholder value creators in that period have been Apple ($212bn), Exxon Mobil (86), IBM (78), Altria Group (70) and Chevron (67). The top shareholder value destroyers in that period have been American Intl Group ($-217), Pfizer (-188), General Electric (-183), Bank of America (-170), Citigroup (-169) and Time Warner (-130). 41% of the companies included in the S&P 500 in 2004 or 2010 created value in 1993-2010 for their shareholders, while 59% destroyed value. We define created shareholder value and provide the created shareholder value of the 633 companies that were in the S&P 500 in December 2004 or in December 2010.

Keywords: Shareholder value creation, created shareholder value, equity market value, shareholder value added, shareholder return, required return to equity

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo and Aguirreamalloa, Javier and Avendaño, Luis Corres, Shareholder Value Creators in the S&P 500: 1991-2010 (January 13, 2015). Available at SSRN: https://ssrn.com/abstract=1759353 or http://dx.doi.org/10.2139/ssrn.1759353

Pablo Fernandez (Contact Author)

University of Navarra - IESE Business School ( email )

Camino del Cerro del Aguila 3
28023 Madrid
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)

HOME PAGE: http://web.iese.edu/PabloFernandez/

Javier Aguirreamalloa

IESE Business School ( email )

08034 Barcelona
Spain

Luis Corres Avendaño

IESE ( email )

Camino del Cerro del Águila, 3
28023 Madrid, Madrid
Spain
656940704 (Phone)

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