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Financial management of creating value in companies

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  • Dimitar Nenkov

Abstract

This article is an introduction to a specific and important aspect of the financial management of companies nowadays. This is the value creation process. The investment and financing decisions, as well as the corporate policies and strategies, should be assessed within this context. The focus of this research is on the extent of value creation by companies on international capital markets, mainly during the years after the global financial crisis. The study includes analysis of the dynamics of the main indicators of return on capital, as well as the dynamics of the cost of capital. The process of creation of Economic Value Added (EVA) in companies, in the conditions of stagnation on most capital markets, is studied on this basis.

Suggested Citation

  • Dimitar Nenkov, 2017. "Financial management of creating value in companies," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 33-47.
    • Handle: RePEc:bas:econth:y:2017:i:6:p:33-47
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    References listed on IDEAS

    as
    1. Fernández, Pablo, 2002. "EVA, Economic profit and cash value added do NOT measure shareholder value creation," IESE Research Papers D/453, IESE Business School.
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    More about this item

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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