A Three-Step Capital Allocation Framework

Torbjörn Arenbo

Chapter Chapter 15 in Capital Allocation and Value Creation, 2023, pp 197-211 from Springer

Abstract: Abstract The CEO’s main objective is to maximize the long-term value per share. This book has demonstrated that total shareholder return does not necessarily correlate with growth, nor does it correlate with any other capital allocation activity on an overall level. Therefore, each CEO must determine the optimal course of action for their company based on its unique circumstances. While there is no one-size-fits-all solution, a thorough understanding of the value creation framework is an essential starting point for developing effective capital allocation strategies.

Date: 2023
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DOI: 10.1007/978-3-031-47048-6_15

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