Question

Discuss how successful the ANZ company has been at maximizing stakeholders value over a set analysis period. This period may be 12 months, 2 years, or 5 years.

Answer 1

Australia and New Zealand banking company in last 2 years has provided NEGATIVE return of almost 40% to its shareholders and this could be primarily attributed to the recent crash, the stock has seen due to the coronavirus concern and increase in the global uncertainty and shutdown of the operation due to fear of an impending recession and the banking business was impacted on a negative manner and the share price crashed and it slipped almost 60% from its highs and when we are comparing the rate of return of the past two years of the company it has been NEGATIVE 40%.

The company has not been successful in maximizing the rate of the return of the shareholder apart from providing them with certain dividend so the company has wiped out most of their capital andhas not be an efficient company when it comes to maximizing the overall capital appreciation of the shareholders so it has provided them with the negative return and shareholders would not have been happy for investing into this company because they have not just faced with the negative return but also the the cost of inflation so it is highly negative performance on the part of the company when it will be taken in perspective of shareholders value maximization.