Here’s a Better Way to Measure Long-term Shareholder Value

Most executives care about creating long-term shareholder value but haven’t had the right tool to track it. In a recent paper published in Strategic Management Journal, Wharton management professor Nicolaj Siggelkow and Phebo Wibbens, assistant professor of strategy at INSEAD, introduce a new performance measure called LIVA – Long-term Investor Value Appropriation. In the following opinion piece, Siggelkow and Wibbens explain why they developed LIVA and how it differs from other measures of success.