Over the past ten years hundreds of leading companies worldwide have adopted the principles of value-based management (VBM), an approach to corporate strategy and business organisation in which the primary objective is always shareholder wealth maximisation. As VBM has become more widespread the idea of shareholder value has become integral to business. Consultancies have prospered by selling prescriptions for developing a value-oriented firm and managers thought to be excellent in generating shareholder value are held in high esteem and command huge salaries. This book draws on empirical evidence to demonstrate the success of VBM ideas as well as highlighting many of the hidden questions, doubts and difficulties. It examines the validity of some of the underlying assumptions of VBM and tackles many of the key technical issues. This book provides a timely assessment of the theory and practice of VBM as it grows to maturity.