Title: A Classic
Product review: The Quest for Value is a classic work describing the many facets of what creates shareholder value.The first two chapters describing market myths and market realities lay down a basic framework for the rest of the book on the creation of shareholder value.The best topics in the book cover dividend policy, mergers and acquisitions, capital structure, and compensation incentives.In addition, the book spends considerable time explaining the concept of Economic Value Added (EVA). I find these sections of the book less valuable as the examples of how to calculate EVA are extremely simplified. In practice, it is much more difficult to calculate EVA and I find the traditional DCF approach much easier to deal with.Overall, the well written and communicated sections on the creation of shareholder value more than compensates for the weak treatment of calculating EVA. As such, I would recommend this book to any serious student or practitioner of finance.
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