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Еfficiency of value-based management: key indicators

Journal: THE JOURNALZHYTOMYR STATE TECHNOLOGICAL UNIVERSITY. SERIES: ECONOMICS (Vol.1, No. 75)

Publication Date:

Authors : ;

Page : 86-95

Keywords : Value-Based Management (VBM); Residual Income (RI); Market Value Added (MVA); Economic Value Added (EVA); Free Cash Flow (FCF); Net Economic Income (NEI); Shareholder Value Added (SVA); Cash Value Added (CVA);

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Abstract

In the modern situation the forming of the value-based management fully harmonizes economical interests of interested market entities which businesses are connected. Increasing revenues and decreasing expenses, the growth of enterprise’s value are based on image enhancement, the improvement of organizational culture, knowledge of staff, and implementation of innovations. If the profit of the enterprise rises till the specific level, the business’s value increasing is unlimited. The article is dedicated to the mathemetical determination of the key indicators which are used for assessment of value-based management efficiency. The content of the main indexes which are used for evaluation of enterprise’s market value is reviewed. The algorithms of calculation of VBM-indexes based on obligatory financial statements are determined. The peculierities of using value characteristics in financial work of the enterprise are determined. The necessity of analyzing the complex of VBM-indexes for the assessment of value-based management efficiency is generated.

Last modified: 2016-09-29 18:30:19