EMPIRICAL ANALYSIS OF THE ROLE OF THE FIRMS’ VALUE DRIVERS

Anita Kiss
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Anita Kiss: Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen

Network Intelligence Studies, 2015, issue 6, 91-96

Abstract: 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.

Keywords: Value creation; Shareholder value; Value driver; Firm valuation (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cmj:networ:y:2015:i:5:p:91-96

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