“Meditate upon these things; give thyself wholly to them; that thy profiting may appear to all.” (1Tim.4:15 KJV)
I took particular interest in the concept of shareholder value in corporate finance during my MBA program because of the extensive research works done by my Thesis Supervisor, Matt Davis in that regard. Students of finance and managers alike will find his works very valuable.
The ability to deliver value to shareholders by management is called shareholder value in corporate finance. Invariably, increasing shareholder value will increase the total amount in the stockholders’ equity section of the balance sheet creating opportunities for dividend pay-outs and capital appreciation. It is important to underscore the importance of dividends to investors. Most investors will adopt the dividend valuation model to value a company in their investment decisions. It becomes instructive to note that dividends are paid from distributable profits. Invariably, that is the part of the profit that is visible for all to see arising from its peculiar and pecuniary benefits. It has a direct impact on the investors.
Howbeit, it takes a lot of diligence, concerted and strategic work to make visible profits on the part of management. No wonder, Paul instructs his son in the gospel, Timothy, to give himself wholly to his assignment to maximise profits which will not only be beneficial to him but to all that is within his sphere of influence.
Hear this: Until you come to the point of making profits that can be distributed to all within the sphere of your influence, you have failed in keeping to the law of contribution.
Dividends in our context here is much more than cash rewards. The value you create that is beneficial to society is what will showcase your worth for all to see.
I am inspired by the charitable acts of two leading entrepreneurs who are reputed to be among the wealthiest in the world, Bill Gates and Warren Buffet. According to a regulatory filing, Gates made a donation of 64million Microsoft shares worth $4.6Billion on June 6, 2017, making his largest giveaway since 2000. Though, he has not revealed the recipients of the donation, Bloomberg notes he and his wife, Melinda have been funding their eponymous philanthropic organisation with substantial gifts every year.
Likewise, Warren Buffet pledged the majority of his wealth to charity. He pledged 85% of his stockholdings to five charitable organisations. Recently, he penned an op-ed titled, “My Philanthropic Pledge” of his decision to donate 99% of his wealth to charity. And what made it more instructive is his attitude to giving. He said, “he couldn’t be happier.”
In spite of their selfless sacrifices to society, they have refused to diminish in worth. They have consistently remained among the first four wealthiest men in the world.
“There is that scattereth, and yet increaseth; and there is that withholdeth more than is meet, but it tendeth to poverty.” (Prov. 10:24 KJV)
Friend, please give yourself wholly to that God given assignment, otherwise you create a hole in destiny. I see you impacting lives by your wholesome engagements.
You are a distributor of heavenly resources!
Remain ever beautified!