Value as a criterion for enterprise management effectiveness

Economic Annals-ХХI: Volume 141, Issue 5-6, Pages: 68-71

Citation information:
Shevchuk, N. (2014). Value as a criterion for enterprise management effectiveness. Economic Annals-XXI, 5-6, 68-71. https://ea21journal.world/index.php/ea-v141-17/

Nataliia Shevchuk
PhD (Economics),
Associate Professor,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave, Kyiv, 03057, Ukraine
natalykneu@ukr.net

Value as a criterion for enterprise management effectiveness

Abstract. The value of the enterprise is multifaceted economic category, and the results of its research are ambiguous and sometimes contradictory. A look at value as a criterion for the efficiency of enterprise management necessitates disclosure of its essence, because of the ability to create new value, which, in turn, needs to be improved and adapted to the practical usage of appropriate analytical tools. In this article, the reasons regarding feasibility of using the concept of economic value added as the one that is best suited to formalize and evaluate factors that direct management influence on the development of value added. In this paper, the multifactor model analysis of economic value added and its practical implementation allows defining the factors to which the processes of value formation appeared to be more sensitive. After the study of 35 industrial enterprises in Ukraine (mining and concentrating, metallurgical, machine-building, food), it was determined that the most influential are the factors that shape the yield and the level of optimality (rationality) structure of financial assets. The author argued the feasibility of index matching usage of the profitability critical importance in its actual implementation as a signal to management concerning the feasibility of the appropriate corresponding action.

Keywords: Value; Yield Spread; Economic Value Added; Return on Capital

JEL Classification: D24; М11

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Received 04.03.2014