Unlocking Corporate Value – An Investigation on the Extent to which an Organization’s Strategic Priorities Can Affect its Corporate Value
Abstract:
All over the world, businesses experience stormy and changeable business environments which influence the success or otherwise of the business. The financial industry – banking especially, is not an exception to this theory as the world has become a global village, with activities from one country becoming a threat to businesses in other countries. It is therefore imperative for organizations to employ various strategies to enable them compete and survive in turbulent environments. There are several facets of an organization which facilitate its attainment of corporate value. Of utmost importance is the definition of strategic priorities which must be in place for an organization to achieve its objectives. For this study, in terms of understanding the extent to which an organization’s Strategic Priorities can affect its Corporate Value, the chosen organization’s strategic priorities of Technological Innovation, Level of Productivity, Service Delivery, Wealth Maximization and Market Efficiency were all examined to determine the degree to which they affect corporate value. The study adopted a convergent parallel design approach to enable the extraction and analysis of quantitative and qualitative data. Due to its composite attributes of perfectly combining the characteristics of cluster sampling with stratified sampling elements, the multi-stage sampling technique was adopted. Following a robust analysis, the conclusion was that an organization’s strategic priorities jointly and significantly influence its corporate value. Multiple regression results reveal an F-value of 88.77; p<0.05 thus demonstrating statistical significance between the combined strategic priorities and the firm’s corporate value, with Wealth Management very significant (β=.28; p<.05).References:
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