Value Creation Rating (VCR 2025) - by Tomas Casas I Klett & Martin Nerlinger (Hardcover)

About the Book

The Value Creation Ratings 2025 (VCr2025) proof-of-concept focuses on The Sustainable Value Creation of Firms and is an exploratory prototype that assesses 1,000 listed firms from the world's leading stock markets in terms of how their business models create or transfer value.

Book Synopsis

The Value Creation Ratings 2025 (VCr2025) proof-of-concept focuses on The Sustainable Value Creation of Firms and is an exploratory prototype that assesses 1,000 listed firms from the world's leading stock markets in terms of how their business models create or transfer value.

The comprehensive firm-level VCr measurement establishes the proportion of value creation in relation to revenue. A simpler second measurement, the Value Creation Position (VCp), establishes the percentage of value transfers in relation to revenue. The VCr2025 proof-of-concept report is the flagship output of a sister project to the already established Elite Quality Index (EQx2025) that assesses The Sustainable Value Creation of Nations. "Revolutionizing Risk by Weighting Value" drives VCr2025 and represents a uniquely comprehensive approach to double materiality, connecting a firm's value creation and profit optimization with its impact on stakeholders, including customers, suppliers, capital providers, employees, regulators, nature, and academic and research institutions.

In short, the VCr reports operationalize sustainability by matching the revenue of firms against their extractive value transfer-IN and inclusive transfer-OUT amounts. Value transfer-IN is "value appropriated but not created," while value transfer-OUT is "value created but not appropriated."

A firm's business model is assessed in the VCr2025 proof-of-concept report by 102 Sustainable Value Creation (SVC) Metrics selected because of its value transfer- IN/OUT rationale.

About the Author

Tomas Casas-Klett is permanent faculty at the University of St.Gallen. He specializes in International Business, particularly on how to do business in Asia. He is the co-editor of both the annual Elite Quality Index (EQx) report on the sustainable value creation of nations and the annual Value Creation Ratings (VCr) report on the sustainable value creation of firms, as well as the author of the forthcoming book, The Elite Theory of Economic Development.

Martin Nerlinger is Assistant Professor at the University of St.Gallen's School of Finance (SoF), Swiss Institute of Banking and Finance (SBF-HSG) and a faculty member of the Swiss Finance Institute (SFI). He holds two BSc degrees in economics and business administration, an MSc in business administration, as well as a PhD in finance, all from the University of Augsburg, Germany.