11 Pages Posted: 13 Feb 2011 Last revised: 18 Oct 2017
Date Written: January 13, 2015
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: 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