Analysis of Value Drivers in Industrial Enterprises

Analysis of Value Drivers in Industrial Enterprises

conference paper

Czech

The aim of the article is to identify factors that affect the value of the company. It is based on the assumption that the value of a company are synergy effects of all decisions. In the first place, contribution focuses on the quantifiable value to the company and generators, i.e. factors affecting the value of the company (whether positively or negatively). Partial aim of the article is perform a literary search in scientific and technical articles relating to generators, values, and approaches to their identification.In a contribution is shown the very concept of value drivers, and why they are important for the enterprise. Value-based management becomes a necessity to all companies. The companies are opened to the outside environment and changed the orientation of the management of the enterprises in competitive struggle to obtain capital. Enterprises are forced to investors and owners who require the addition of equity capital in accordance with world standards. These measures are crucial for the other subjects, which are trying to invest capital and gain greater influence. Company management must therefore in the management of the company to focus on such values according to which companies assess the external environment, therefore, the value for all who are involved with the firm (stakeholder value) is increasingly becoming the most important criterion and aim. It was from this concept is based on the Firefox value drivers, which more accurately measured the effectiveness of the processes and elements of which the value is generated. An integral part of the article is the brief research studies dealing with this theme. One of the methods that will be used for the purposes of this contribution, are the fundamental methods of financial analysis (in particular the analysis ratios), through which it will be described by the set of enterprises. It will also use logarithmic decomposition parameters of return on equity, which is based on DuPont equation and decomposition of ROE to the partial indicators. In the article will be presented the results of the analysis carried out on the data of industrial enterprises, which most affect the results obtained Czech industrial enterprises. It is derived from the decomposition of the profitability indicators of equity, because this indicator is one of the most performance indicators of the company. For the purposes of this contribution has been selected according to the decomposition method of logarithms of indices of analytical indicators, so-called logarithmic decomposition method, as it is considered the most accurate-despite the limitations posed by the use of this method (for instance Sedláček, 2009). The methods that have been used are elemental methods of financial analysis (in particular the analysis ratios), logarithmic decomposition parameters of profitability of equity capital and literary research. In the model are used for secondary data published in the Amadeus database. In the conclusion of contribution are identified the most common generators values that positively affect the value of industrial enterprises (company value is expressed as an indicator of the return on equity) in the Czech Republic. Research is carried out on the data obtained from the accounting records of industrial enterprises in the Czech Republic. The data source is the database Amadeus. The industry is one of the major sectors of the Czech economy. His position can be demonstrated as a share of gross domestic product (approximately 30%) and total employment (on average 31%). Another factor that can demonstrate the importance of the Czech industry is also the number of economically active entities (for example, in 2009 was 156.245, which is 20% of the total number of economically active enterprises). The output of the above-mentioned model will determine what each sub factors and in which direction is the resulting value of the profitability of its own capital in the Czech industrial enter

The aim of the article is to identify factors that affect the value of the company. It is based on the assumption that the value of a company are synergy effects of all decisions. In the first place, contribution focuses on the quantifiable value to the company and generators, i.e. factors affecting the value of the company (whether positively or negatively). Partial aim of the article is perform a literary search in scientific and technical articles relating to generators, values, and approaches to their identification. In a contribution is shown the very concept of value drivers, and why they are important for the enterprise. Value-based management becomes a necessity to all companies. The companies are opened to the outside environment and changed the orientation of the management of the enterprises in competitive struggle to obtain capital. Enterprises are forced to investors and owners who require the addition of equity capital in accordance with world standards. These measures are crucial for the other subjects, which are trying to invest capital and gain greater influence. Company management must therefore in the management of the company to focus on such values according to which companies assess the external environment, therefore, the value for all who are involved with the firm (stakeholder value) is increasingly becoming the most important criterion and aim. It was from this concept is based on the Firefox value drivers, which more accurately measured the effectiveness of the processes and elements of which the value is generated. An integral part of the article is the brief research studies dealing with this theme. One of the methods that will be used for the purposes of this contribution, are the fundamental methods of financial analysis (in particular the analysis ratios), through which it will be described by the set of enterprises. It will also use logarithmic decomposition parameters of return on equity, which is based on DuPont equation and decomposition of ROE to the partial indicators. In the article will be presented the results of the analysis carried out on the data of industrial enterprises, which most affect the results obtained Czech industrial enterprises. It is derived from the decomposition of the profitability indicators of equity, because this indicator is one of the most performance indicators of the company. For the purposes of this contribution has been selected according to the decomposition method of logarithms of indices of analytical indicators, so-called logarithmic decomposition method, as it is considered the most accurate-despite the limitations posed by the use of this method (for instance Sedláček, 2009). The methods that have been used are elemental methods of financial analysis (in particular the analysis ratios), logarithmic decomposition parameters of profitability of equity capital and literary research. In the model are used for secondary data published in the Amadeus database. In the conclusion of contribution are identified the most common generators values that positively affect the value of industrial enterprises (company value is expressed as an indicator of the return on equity) in the Czech Republic.Research is carried out on the data obtained from the accounting records of industrial enterprises in the Czech Republic. The data source is the database Amadeus. The industry is one of the major sectors of the Czech economy. His position can be demonstrated as a share of gross domestic product (approximately 30%) and total employment (on average 31%). Another factor that can demonstrate the importance of the Czech industry is also the number of economically active entities (for example, in 2009 was 156.245, which is 20% of the total number of economically active enterprises). The output of the above-mentioned model will determine what each sub factors and in which direction is the resulting value of the profitability of its own capital in the Czech industrial enter

Value drivers, value of a company, value-based management, return on equity, logarithmic decomposition method

Value drivers, value of a company, value-based management, return on equity, logarithmic decomposition method

STRNADOVÁ, M.

2012

20. 9. 2012

Fakulta podnikatelská

Brno

978-80-214-4581-9

Trends in Economics and Management for the 21st Century

186

187

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