Shareholder Value Creators in the S&P 500: Year 2003

Abstract

During 2003, 87% of the companies included in the S&P 500 created value, while in 2002 just 17% of these companies did it. The market value of the 500 companies was $10.1 trillion in 2003 and $7.9 trillion in 2002. The top shareholder value creators in 2003 were Intel, Cisco, Citigroup, General Electric and Exxon. 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 eleven-year period 1993-2003. General Electric was the top shareholder value creator and AT&T was the top shareholder value destroyer during the eleven-year period. On average, the small market capitalization companies of the S&P were more profitable. The volatility of the S&P fell since 1998 to 2003, but the volatility of his components increased on average.

Keywords: Shareholder value creation

JEL Classification: G12, G31, M21