Measurement of Creating Corporate Value for Shareholders – Development of Measurements and Improvement of Management Competence and Skills - Polish Journal of Management Studies

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Measurement of Creating Corporate Value for Shareholders – Development of Measurements and Improvement of Management Competence and Skills

Abstracts > Vol 9

MEASUREMENT OF CREATING CORPORATE VALUE FOR SHAREHOLDERS DEVELOPMENT OF MEASUREMENTS AND IMPROVEMENT OF MANAGEMENT COMPETENCE AND SKILLS
Kaczmarek J.

Abstract: This article discusses the issues of increasing the perception of measurements for the creation of corporate value by introducing the concept of superior size, as well as relativization for e.g. evaluation of the benchmark. Consideration is also given to the connection between measurements used for creating added, market and income corporate value.
The application section contains surveys carried out on listed companies, leading in the creation and destruction of added value in manufacturing.  The findings have helped to assess the medium
term correlation of changes in superior market added value with changes in company capitalization and the economic added value and income value relative to market value.

Key words: corporate value, creation of value, added value.

Introduction
Assessment in the creation of corporate value is used in order to motivate managers to implement strategies to maximize. The benefits of such actions are aimed at all company stakeholders, including in particular, owners. Although the increase in corporate value for owners the basic topic of consideration in this article should be assessed in the long term, however, motivation concerning these actions requires an assessment of the short and medium terms. This perspective is also relevant for financial analysts. They search for points of reference, trade measures, ways to extend the information capacity of classical measures for creating values available in specialist literature.
The theoretical
methodical purpose of the article is to indicate the ways of increasing the field of perception of measures for creating values by introducing the concept of superior size, as well as relativization for the assessment of reference groups (benchmark) and time. Consideration is also given to the connection between measurements used for creating added, market and income corporate value.
The purpose of application contains surveys carried out on listed companies, leading in the creation and destruction of added value in manufacturing.  The findings of medium
term assessment have permitted confirmation of the hypothesis concerning the significant correlation of changes in superior market added value with changes in company capitalization. At the same time the absence of the economic correlation of added value and income value relative to market value has been demonstrated.
The cognitive value, in particular the applicative value of the article, ideally fits into the educational process of financial personnel and the adapting of education to the requirements of corporate management.   Of key importance is the preparation of the ability to independently perform an analysis in the creation of corporate value for comprehensive economic systems with the use of benchmarking, the search for measurement connections and correlations used for this purpose and the acquisition of greater knowledge and competence in order to broaden the field of perception for the purpose of performing one
s own assessments.

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Summary
The measurement of corporate efficiency in terms of created value is often performed with the use of the following market measures: TSR, MVA or EVA TM. This has a tendency to broaden the field of perception by introducing the concept of superior size, as well as relativization for, amongst others, assessment in terms of benchmarking. Use should be made of links between measures in the creation of value added (economic and market), and market corporate value the capital invested in the company. It is also helpful to refer to income methods in corporate assessment.
The findings of research carried out on listed companies gave a range of medium
term assessment conclusions.  Their meaning is based on the advantage of these entities in the creation and destruction of added value in manufacturing. This summary contains the basic empirical conclusions drawn from theoretical and methodical considerations.
Measures of income value and economic value added express internal value; this does not harmonize in the group of analysed companies with external assessment, with the use of MV E market value measures and MVA E market value added, also superior MVA EN. These two latter measures are long
term measures, as opposed to the economic value added measure (relating to a given single period).   On the other hand, however, MVA E combines in itself committed capital and the sum of EVA E. This means that there should be a closer correlation between MVA E and EVA E, even in the shortterm.  The difference in terms of time may also be the result of a lack in the short period of proven DCF positive correlation in income value and MV E (price of shares).
One may expect that continuation in research in terms of a formulated path (extension of time sequences), will permit the verification of the hypothesis on the pre
emptive nature of signals stemming from external measures of created value (secondary) in terms of signals stemming from internal measures (primary).

References
Benning S.Z., Sarig O.H., Finanse przedsiębiorstwa: Metody wyceny, WIGPress, Warsaw 2000.
Black A., Wright P., Bachman J., W poszukiwaniu wartci dla akcjonariuszy, Dom Wydawniczy ABC, Warsaw 2000.
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Cwynar A., Cwynar W., Zarządzanie wartością spółki kapitałowej. Koncepcje, systemy, narzędzia, FRRwP, Warsaw 2002.
Ehrbar A., EVA. Strategia tworzenia wartości przedsiębiorstwa, WIG
Press, Warsaw 2000.
Fernandez P., A Definition of Shareholder Value Creation, Working Paper of IESE Business School 2001/4.
Knight J.A., Value Based Management: Developing a Systematic Approach to Creating Shareholder Value, McGraw
Hill, New York 1997.
McTaggart J.M., Kontes P.W., Mankis M.C., Value Imperative: Managing for Superior Shareholder Returns, Free Press, New York 1994.
Mikołajek
Gocejna M.,  Rynkowe miary tworzenia wartości przedsiębiorstwa
i wartości dla akcjonariuszy
, e
finanse, WSIiZ w Rzeszowie, 2010/6.
Nyiramahoro B., Shooshina N., Creating and Measuring Shareholder Value, Applicability and Relevance in Selected Swedish Companies, Göteborg University, Elanders Novum AB, Göteborg 2001.
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Based Management, Handbook of Business Strategy 2003, nr 4.
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POMIAR KREOWANIA WARTOŚCI PRZEDSIĘBORSTWA DLA AKCJONARIUSZY ROZWÓJ METOD ORAZ DOSKONALENIE KOMPETENCJI I UMIEJĘTNOŚCI ZARZĄDZAJĄCYCH

Streszczenie: Artykuł porusza zagadnienia zwiększenia pola percepcji miar kreowania wartości przedsiębiorstwa przez wprowadzenie koncepcji wielkości nadmiarowej, jak również relatywizacji służącej m.in. ocenie względem benchmarku. Rozważono także związki miar kreowania wartości dodanej, rynkowej oraz dochodowej przedsiębiorstwa.
Część aplikacyjną wypełniają badania spółek giełdowych, wiodących w tworzeniu
i destrukcji wartości dodanej w działalności produkcyjnej. Uzyskane wnioski pozwoliły na ocenę średnioterminową korelacji zmian nadmiarowej rynkowej wartości dodanej ze zmianami kapitalizacji spółek oraz ekonomicznej wartość dodanej i wartości dochodowej względem wartości rynkowej.

Słowa kluczowe: wartość przedsiębiorstwa, kreowanie wartości, wartość dodana.

公司为股东创造价值 测量的发展和改进的管理能力和技能的测量

摘要: 本文讨论了通过引入概念的优越的大小,以及如评价基准的关系增加的度量,创造企业的价值观念的问题。用来创建添加,测量之间的连接也给予考虑市场和收入的企业价值。应用程序部分包含上市公司,领先的创建和销毁的制造业增加值进行调查。调查结果有助评估中期 相关性的公司资本化和经济增加值和收益价值与市场价值的变化与优异的市场增加值的变化。

关键词: 企业价值、 创造价值,添加值

 
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