Enterprise Value Management - Strategy, Finance, Investment And Performance

Corporate value is the outcome of corporation's commercial. Only when corporation is exchanged in market as a commodity, can it behave some value. Corporate exchangeable characteristic and the profitability of this exchange result in revolutionary change of the goal of corporation and the means of management. The corporate performance should be evaluated in both commodity market and capital market. The corporate goal of profit maximum has been changed into the goal of value maximum. The corporate management has been transformed from profit-oriented into value-oriented. The management of value-oriented and value maximum is the value-based management. This thesis makes the corporate value and the value-based management as its theme. On the basis of introduction and summation of internal and international research, this thesis focuses on solving four issues. First, why dose the corporate value-based management become the core of corporate management. Second, what are the factors that composed and influenced corporate value. Third, how does the corporate value be created through effective management. Finally, how does the theory and means of value-based management be implemented into analyzing and guiding corporate management. The whole thesis is composed of three parts.The first part is the theory fundament of the whole thesis. First, under the frame of the value theory and the contractual theory of the firm, this part discusses how the corporate value compose and what its boundary is, and gave a concept system of corporate value. Next, this part analyzes micro-pushers and macro-drivers of the corporate value-based management's origin and development, in the aspect of enterprise institutional change and of present economical environment change. Finally, this part discusses the composing and drivers of the corporate value, and gives approaches and means to create the corporate value.The second part is the main of the thesis. This part discusses one by one how to improve the creation of corporate value through strategy management, finance management, investment management and performance management.Corporate strategy determines the operation scope and the policy of competition, and determines the basic model and the potential of the value creation, so it is the core of the value creation. By the scientific and rational approach, according to the principle of value maximum, after refinement of unit's value chain and optimization of company's strategy, we can design the strategy of value creation, which is internal and external coherence.Corporate financing decision is the key of corporate value, which determines the structure and the cost of capital. Modern financing decision should take many factors into account such as the economic environment, the industrial characteristic, the tax policy, the asset's type and the revenue's stability, based on the principle of traditional capital structure theory. Because of information asymmetry and the weak-form efficiency, the relation of investors requires efficacious manage. The main measures include selecting investors who have the same investment ideas, and efficacious communication with investors and rationally leading investors' expectations.Investment decision and its implementation is the process of the creation of corporate value. In certainty world, there are net present value approach, internal rate of return approach, payback period approach and profitability index approach. But in uncertainty world, the investment results variable future cash flow. So, the rule of investment decision should be adjusted by certainty equivalents or risk-adjusted discount rates. During decision and implementation, thedecision-makers have many valuable choice and alternations. The valuable opportunity of choice is called option. The investment decision must take the value of option into account under uncertainty. Finance and investment are two independent processes in the classic theory. In fact, there are strong influence and complex relationship among them.Perform...