A value-based approach to evaluating the effectiveness of a company's financial management
https://doi.org/10.34020/1993-4386-2023-4-118-125
Abstract
In conditions of high competition and complexity of economic processes, the problem of evaluating the company's performance factors becomes urgent, which explains the interest in the value-oriented approach, which has been most common in recent decades in financial management. The article examines the content of this approach from the perspective of its broader interpretation: the potential for increasing the value of the company can be found in the strategy of meeting the needs of all parties interested in its development, and also presents the author's vision of the financial management model within the framework of a value-based approach – a system of value- based assessment of the effectiveness of financial management of the company.
About the Author
A. N. PristavkaRussian Federation
Alina N. Pristavka – Deputy Director for Economics and Finance; graduate of full-time postgraduate studies in 2022 in the field of Economics, Novosibirsk State University of Economics and Management (qualification "Researcher. Teacher-researcher")
Novosibirsk
References
1. Koudina M. V. Fundamental and Market Value of the Company. Rossijskoe predprinimatel'stvo, 2010, No. 1-2, pp. 32-37. (in Russ.)
2. Matyash I. V. Investment Attractiveness and Sustainable Growth of Telecommunication Companies: Value-Oriented Approach. Ekonomika regiona, 2018, Vol. 14, No. 4, pp. 1411-1423. DOI: 10.17059/2018-4-27 (in Russ.)
3. Karlov A. M., Kharin A. G. The method of a company dynamic management on the basis of a total value indicator, Ekonomicheskij analiz: teoriya i praktika, 2014, No. 22 (373), pp. 9-15. (in Russ.)
4. Psareva N. Yu., Kiselev D. N. Value-oriented approach in the process of business digitalization. Vestnik BIST (Bashkirskogo Instituta Social'nyh Tekhnologij), 2023, No. 2 (59), pp. 52-57. (in Russ.). DOI: 10.47598/2078-9025-2023-2-59-52-57
5. Sanin V. V. Stakeholders' interests balance and conflict in strategic and business plans of a company, Korporativnye finansy, 2009, Vol. 3, No. 2 (10), pp. 112-131. (in Russ.).
6. Fadeykina N. V., Bryukhanova N. V. Key indicators methodology in management of organizations. Sibirskaya finansovaya shkola, 2012, No. 2, pp. 80-83. (in Russ.).
7. Freeman R. E. Strategic Management: A Stakeholder Approach. Boston: Pitman Publishing, 1984. – 296 р.
8. Gizatullin A. V. Corporate governance, social responsibility and financial efficiency of the company, Rossiiskii zhurnal menedzhmenta, 2007, Vol. 5, No. 1, pp. 35-66. (in Russ.).
9. Rappaport A. Creating Shareholder Value: Тhe New Standard for Business Performance. – New York: Free Press, 1986. – 270 р.
10. Copeland T. E., Koller T., Murrin J. Stoimost' kompanij: ocenka i upravlenie [Valuation Measuring and Managing the Value of Companies], Moscow: Olimp-Biznes, 2005, 576 p. (in Russ.).
11. Izmaylov M. K., Kobzev V. V. Problems and prospects of implementation of value-based management at domestic industrial enterprises, Nauchno-tekhnicheskie vedomosti SPbGPU. Ekonomicheskie nauki, 2019, Vol. 12, No. 5, pp. 199-208. (in Russ.).
12. Gribsov S. V. The development of the costoriented approach to the industrial enterprise management, Vestnik Saratovskogo Gosudarstvennogo Social'no-Ekonomicheskogo Universiteta, 2009, No. 3 (27), pp. 82-86. (in Russ.).
13. Nazarova V. V., Birukova D. S. Cost methods of evaluating the effectiveness of the company's management, Nauchnyj zhurnal NIU ITMO. Seriya: Ekonomika i ekologicheskij menedzhment, 2014, No. 3, pp. 393-414. (in Russ.).
14. Shigaev A. I. System of Accounting and Analysis for Value-Based Management, Audit i finansovyj analiz, 2011, No. 4, pp. 338-347. (in Russ.).
15. Volkov D. L. Performance indicators: use in company value-based management. Rossijskij zhurnal menedzhmenta, 2005, No. 2, pp. 3-42. (in Russ.).
16. Pristavka A. N. Development of performance measurement system, Kreativnaya ekonomika, 2022, Vol. 16, No. 3, pp. 987-1002. (in Russ.). DOI: 10.18334/ ce.16.3.114398
17. Lyandau U. V. The development of the processbased approach to management, Vestnik UMO, 2013, No. 6, pp. 65-68. (in Russ.).
18. Porter M. Konkurentnoe preimushchestvo: kak dostich' vysokogo rezul'tata i obespechit' ego ustojchivost' [Competitive advantage: How to Achieve High Results and Ensure Its Sustainability], Moscow: Alpina Digital, 1985, 1020 p. (in Russ.).
19. Tkachenko M. B., Mishchenko L. V. Tools for forming a budget model of process and project-oriented budgeting, Upravlenie, 2015. Vol. 3, No. 4. pp. 49-54. (in Russ.).
20. Thompson A. A., Strickland A. J. Strategicheskij menedzhment. Iskusstvo razrabotki i realizacii strategii [Strategic management. The Art of Strategy Development and Implementation], Moscow: Banks and stock exchanges, UNITI, 1998, 576 p. (in Russ.).
21. Bititci U.S., Turner T., Begemann C. Integrated performance measurement systems: a development guide. International, Journal of Operations & Production Management, 1997, Vol. 17, No. 5, pp. 522-534.
22. Parmenter D. Klyuchevye pokazateli effektivnosti. Razrabotka, vnedrenie i primenenie reshayushchih pokazatelej [Key Performance Indicators Developing. Implementing and Using Winning KPIs], Moscow: OlimpBiznes, 2007, 258 p. (in Russ.).
23. Kaplan R. S., Norton D. P. Using the Balanced Scorecard as a strategic management system, Harvard Business Review, 1996, January-February, РР. 75-85.
24. Pristavka A. N. Company performance measurement systems:restrictions and ways of their elimination. Sibirskaya finansovaya shkola, 2021, No. 3 (143), pp. 103-108. (in Russ.).
25. Pristavka A. N. Improving the measurement of a company's performance effectiveness. Mir ekonomiki i upravleniya, 2022, Vol. 22, No. 1, pp. 165-184. (in Russ.). DOI: 10.25205/2542-0429-2022-22-1-165-184
Review
For citations:
Pristavka A.N. A value-based approach to evaluating the effectiveness of a company's financial management. Siberian Financial School. 2023;(4):118-125. (In Russ.) https://doi.org/10.34020/1993-4386-2023-4-118-125