EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS
This paper focuses on the value creation and the value drivers. One of the objectives of this paper is to present the concept of maximizing shareholder value. The main goal is to categorize the most important value drivers, and their role of the firms’ value. This study proceeds as follows. The firs...
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| Format: | Article |
| Language: | English |
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Romanian Foundation for Business Intelligence
2015-12-01
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| Series: | Network Intelligence Studies |
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| Online Access: |
http://seaopenresearch.eu/Journals/articles/NIS_6_1.pdf
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| _version_ | 1828844124453732352 |
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| author | Anita KISS |
| author_facet | Anita KISS |
| author_sort | Anita KISS |
| collection | DOAJ |
| description | This paper focuses on the value creation and the value drivers. One of the objectives of this paper is to present the concept of maximizing shareholder value. The main goal is to categorize the most important value drivers, and their role of the firms’ value. This study proceeds as follows. The first section presents the value chain, the primary and the support activities. The second part describes the theoretical background of maximizing shareholder value. The third part illustrates the key value drivers. The fourth empirical section of the study analyses the database featuring data from 18 European countries, 10 sectors and 1553 firms in the period between 2004 and 2011. Finally, the fifth section includes concluding remarks. Based on the related literature reviewed and in the conducted empirical research it can be assessed that, the EBIT, reinvestment, invested capital, the return on invested capital, the net margin and the sales growth rate all have a positive effect on firm value, while the tax rate and the market value of return on asset (MROA) has a negative one. |
| first_indexed | 2024-12-12T20:58:57Z |
| format | Article |
| id | doaj.art-9ee811c57abb4d98ac9c73d42afd44fb |
| institution | Directory Open Access Journal |
| issn | 2344-1712 |
| language | English |
| last_indexed | 2024-12-12T20:58:57Z |
| publishDate | 2015-12-01 |
| publisher | Romanian Foundation for Business Intelligence |
| record_format | Article |
| series | Network Intelligence Studies |
| spelling | doaj.art-9ee811c57abb4d98ac9c73d42afd44fb2022-12-22T00:12:12ZengRomanian Foundation for Business IntelligenceNetwork Intelligence Studies2344-17122015-12-01III6 (2/2015)9196networ:y:2015:i:5:p:91-96EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERSAnita KISS0 Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen This paper focuses on the value creation and the value drivers. One of the objectives of this paper is to present the concept of maximizing shareholder value. The main goal is to categorize the most important value drivers, and their role of the firms’ value. This study proceeds as follows. The first section presents the value chain, the primary and the support activities. The second part describes the theoretical background of maximizing shareholder value. The third part illustrates the key value drivers. The fourth empirical section of the study analyses the database featuring data from 18 European countries, 10 sectors and 1553 firms in the period between 2004 and 2011. Finally, the fifth section includes concluding remarks. Based on the related literature reviewed and in the conducted empirical research it can be assessed that, the EBIT, reinvestment, invested capital, the return on invested capital, the net margin and the sales growth rate all have a positive effect on firm value, while the tax rate and the market value of return on asset (MROA) has a negative one. http://seaopenresearch.eu/Journals/articles/NIS_6_1.pdf Value creationShareholder valueValue driverFirm valuation |
| spellingShingle | Anita KISS EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS Network Intelligence Studies Value creation Shareholder value Value driver Firm valuation |
| title | EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS |
| title_full | EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS |
| title_fullStr | EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS |
| title_full_unstemmed | EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS |
| title_short | EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS |
| title_sort | empirical analysis of the role of the firms value drivers |
| topic | Value creation Shareholder value Value driver Firm valuation |
| url |
http://seaopenresearch.eu/Journals/articles/NIS_6_1.pdf
|
| work_keys_str_mv | AT anitakiss empiricalanalysisoftheroleofthefirmsvaluedrivers |