Review: Value

Corporate leaders are often given half-truths and bad information about what creates value at a company. If only leaders had a go-to guide to help them make sound strategic and financial decisions about their own companies. Now they do. From the same trio of McKinsey partners who wrote the best-selling book Valuation: Measuring and Managing the Value of Companies , comes Value: The Four Cornerstones of Corporate Finance . In it, the three authors share their four cornerstones—the core of value, the conservation of value, the expectations treadmill and the best owner—and other principles, including: growth isn't always the key to value creation; share repurchases rarely create value; near-term changes in value are usually beyond executives' control and divesting high-performing business can often create more value than retaining them.