The CEO’s Guide to Corporate Finance: Four Cornerstones of Value Creation
McKinsey’s CEO guide to corporate finance outlines four cornerstone principles for value creation: core-of-value (returns on capital and growth), conservation-of-value (only cash flows create value), expectations treadmill (market expectations drive performance requirements), and best-owner (businesses have different values to different owners). Covers mergers, divestitures, project analysis, and executive compensation strategies.