Apple and equity theory

Equity is perceived when this ratio is equal. Stacy Adams called this a negative tension state which motivates him to do something right to relieve this tension.

Apple and equity theory

It has given us key insights into the concept of risk, and has led to improved understanding of the way that markets function. At the same time, it has led to an ever increasing level of abstraction in the way that many asset owners and asset managers think about investing. Stocks are viewed not as businesses, but as collections of factor exposures.

In addition, the use of indices as benchmarks has had unintended consequences for the behavior of both asset owners and asset managers.

In the end, though, MPT is only a model of reality; a useful model, but still a model. It is not reality itself. We need to remember that in reality individual stocks rise and fall because of the success or failure of the underlying businesses; that the market as a whole rises or falls because of the ability of the average business to generate a premium over its cost of capital; and that not every publicly traded company is a business worth owning.

Ultimately, there are limits to what MPT can do to help us be successful investors. The reviewer, Hilton Kramer, made this observation: And given the nature of our intellectual commerce with works of art, to lack a persuasive theory is to lack something crucial—the means by which our experience of individual works is joined to our understanding of the values they signify.

Artists, Wolfe believed, were no longer creating works of art to express ideas about beauty or history or various other subjects. Rather, they were creating art primarily to illustrate theories about art itself, understandable only to other artists or critics steeped in the same theories.

By the time Wolfe was writing the book, some works of art consisted of nothing more than words on a page or a canvas. Now, at last, on April 28,I could see.

I had gotten it backward all along.

Sponsor Posts

Or perhaps you too see the analogy that we see: We are all so steeped in Modern Portfolio Theory MPT that we do not really appreciate how differently an investor in would have answered certain basic questions, such as: Thinking about how MPT has changed the way many people answer these questions can be quite revealing.

We believe that MPT has been a positive development in helping people to better understand investing. But like any theory, MPT is only a model of the way the real world works; it is not the real world itself.

BREAKING DOWN 'Cost Of Equity' Try to change the efforts of the comparison person.
What is 'Cost Of Equity' View our Privacy Policy and Legal Notices. Inputs This equity theory term ecompasses the quality and quantity of the employees contributions to his or her work.
What is an 'Equity Capital Market - ECM' Shareholder A shareholder or stockholder is an individual or company including a corporation that legally owns one or more shares of stock in a joint stock company. Both private and public traded companies have shareholders.
These include the marketing and distribution and allocation of issues, IPOsprivate placements, derivatives trading and book building. The main participants in the ECM are investment banks, broker-dealers, retail investors, venture capitalists, private equity firms, angel investors and securities firms.
When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation.

It is our contention that over the last 50 years, some investors have become so enamored of the theory that they have lost sight of the real world underlying the theory.

What is a stock?

BREAKING DOWN 'Equity Capital Market - ECM'

MPT does not so much dispute that answer as it simply views it as woefully incomplete. The only risk that the market rewards is the undiversifiable, systematic risk that comes with owning equities, and different stocks contain different levels of exposure to that risk.

Today, a person who wants to appear au courant would tell you that a stock is a collection of multiple factor exposures. In this view, a stock does not carry exposure to just one form of systematic market risk; it has exposure to a whole gamut of risk factors.

Depending on what model you are using to define and measure these various risks, the factors might go by names like size, volatility, financial leverage, growth, quality, or value. But many investment practitioners have become so enamored of this theoretical framework that they reverse cause and effect in the way they think about the world.

They seem to think that a stock did well because it had exposure to certain factors that did well, as if the factor returns have an independent existence of their own out in the cosmic ether, apart from the success or failure of the underlying companies.

But stocks are more than a collection of statistics such as mean return, variance, or a set of factor exposures. As the investor understood well, they are actual businesses. Their success or failure as businesses, which is dependent on their ability to meet the needs of customers and to allocate their cash flow sensibly, ultimately drives their stock price higher or lower.

And it is the success or failure of actual businesses in the real world that creates the theoretical factor returns through the resulting stock price movements. They are not the starting point. But what really happened here?

After the fact, this fall in the stock price, when combined with the factor exposures that the stock had just before its decline, will clearly affect the calculation of the factor returns for that time period.

But if a company with, for example, low financial leverage and high momentum disappoints the market and the stock falls, the market is not punishing low financial leverage and high momentum per se: But almost invariably, some companies are experiencing upward changes in expectations while others are experiencing downward changes.

So to continue the example we just gave, there would likely have been some other company with low financial leverage and high momentum that was simultaneously reporting better than expected profits and was raising its future outlook, and whose stock rose in response.

Stacey Adams equity theory | Employee motivation theories | YourCoach Gent

In the early days, MPT measured that systematic risk on a single dimension:Abstract This essay was written on Employee motivation in Apple company - Employee motivation in Apple corpotation introduction.

I pointed out couple motivation theories that were developed in order to show people the ways of motivating. First and base theory is Maslow’s hierarchy pyramid then there are Equity theories and Two factor theory. Civic Engagement Pedagogy in the Community College: Theory and Practice (Education, Equity, Economy) [Emily Schnee, Alison Better, Martha Clark Cummings] on *FREE* shipping on qualifying offers.

This book will help post-secondary educators to discover the joys and challenges of implementing theoretically grounded civic engagement projects on their campuses.

The core of the equity theory is the principle of balance or equity. As per this motivation theory, an individual’s motivation level is correlated to his perception of equity.

Apple and equity theory

Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratio of contributions (or .

The statement of financial position provides creditors, investors, and analysts with information on company's resources (assets) and its sources of capital (its equity and liabilities).

In conclusion, motivation employee are critically important for the successful of a company.

Apple and equity theory

And Apple is worth as a leader, their strategy is a perfect example because they was not only getting employee to do something or fulfill their needs, but also getting these employees want to do and work for Apple.

Equity theory - Wikipedia