Shareholder Value Creators and Shareholder Value Destroyers in USA. Year 2002

20 Pages Posted: 14 Apr 2003

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Laura Reinoso

IESE Business School - University of Navarra

Date Written: March 10, 2003

Abstract

2002 was a bad year: The shareholder value destruction of the companies in the S&P 500 was $3.3 trillion. In 2002 only 16% of the companies created value (80 companies created value and 420 companies destroyed value). The percentage of value creators was 35%, 54%, 47% and 53% for 2001, 2000, 1999 and 1998. The market value of the 500 companies was $8.1 trillion in 2002 and $10.4 trillion in 2001.

The top shareholder value creators in 2002 were Boston Scientific ($6.5 billion), Bank of America ($6.4 billion), Wachovia ($4.7 billion), and Procter ($3.3 billion). The top shareholder value destroyers in 2002 were General Electric (-$185 billion), Intel (-$125 billion), Microsoft (-$119 billion) and AOL Time Warner (-$101 billion). We define created shareholder value and provide the ranking of created shareholder value for the 500 companies. We also calculate the created shareholder value of the 500 companies during the five-year period 1998-2002. Wal-Mart Stores was the top shareholder value creator ad Coca Cola the top shareholder value destroyer during the five-year period.

We also provide the shareholder return of the 500 companies. Only 148 companies (out of the 500) had positive return on 2002, been the highest Providian Financial (82.8%). Dynegy had the lowest return (95.3%).

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo and Reinoso, Laura, Shareholder Value Creators and Shareholder Value Destroyers in USA. Year 2002 (March 10, 2003). Available at SSRN: https://ssrn.com/abstract=386280 or http://dx.doi.org/10.2139/ssrn.386280

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/

Laura Reinoso

IESE Business School - University of Navarra ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
34-91-357 08 09 (Phone)
34-91-357 29 13 (Fax)

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