Advanced shareholder value orientation

In light of the results above, the rationale for SHV seems as valid as ever. However, to address their skepticism and try to manage the risks from capital market deviations, many companies need to develop a more sophisticated understanding of the true meaning of SHV - an advanced shareholder value orientation. 

As a further consequence of an advanced shareholder value orientation, a more targeted approach can be taken to investor relations. We feel that investor relations in many chemical companies today is predominantly aimed at providing timely, accurate, and exhaustive information to capital markets. Again, the assumption is that capital markets are perfectly efficient and will always evaluate this information correctly again, this does not match up with the real world. Behind the capital markets are investors with a wide variety of expectations and important specific investment preferences and institutional restrictions. In addition, it can be demonstrated that only a small number of investors with significant trading volume mainly influence stock prices in the short and medium term (Coyne, K. P. and Witter, J. W.). 

The conclusion from that is not to abandon the shareholder value orientation, but to enhance the way it is practiced. Such an advanced shareholder value orientation consists of two key elements ... 

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