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Reputation, Qualification and Motivation as Value Drivers

Authors: Mikhail Alexandrovich Limitovskiy;

Reputation, Qualification and Motivation as Value Drivers

Abstract

The article is devoted to the insider’s qualification, reputation and motivation as the shareholders’ value drivers. Using my personal experience and the theoretical analysis I came to the conclusion that any insider’s activity can be treated as value creative or value destructive depending on the market’s attitude to the insider’s personality, estimation of his qualification and motivation. This effect was called «the signaling inversion”. In accordance to this point I worked out a simple model which shows that insider’s activity can be counted as value enhancing if in prevailing opinions more than 2/3 of his investment and financial decisions are made in shareholders’ best interests. In addition to it, the model proves the impossibility of the insider’s value-based motivation in the absence of the responsibility for the wrong decisions, particularly for the acceptance of value destroying projects. Conclusions contain some indirect evidences of the signaling inversion effect.

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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
4
Average
Top 10%
Average
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