Research On Mechanism Design Of Market Value Management

Market Value Management is a new management thought, which gradually developed along with the reform of non-tradable shares in China. Reform of non-tradable shares demonstrates that the era of fully circulation of capital market in China has arrived, in the context of this, market value becomes a new enchmarking which is used to evaluate the value of listed companies, and the thought of market value management emerges as the times require. Market Value Management demands listing companies change comprehensively both management thought and management procedure. Market Value Management theories have carried out many research on this, and this thought has evolved from unfamiliar to a semi-conscious and a conscious act in management practice of listing companies. But, from the present theoretical study and practical experience, Market Value Management research is still in its infancy, and have a long way to go to form a mature theory. In this paper, on the basis of previous research, the author carries out researches on the following aspects:(1)Def ining the basic theories of Market Value Management. It is a management thought characterized by chinese feature. The defination of Market Value Management arises from Value based Management. The article combines VBM and investor relations management related research with Market Value Management, and by defining the relationship between Market Value Management and previous two, clearly defines the connotation and extension of Market Value Management.(2)Building the basic management process around driving factor of key value and management objectives of Market Value Management. On the basis of borrowing three stages containing value creation, value realization and value operation, the article think that Market Value Management should be a goal-oriented management mechanism around driving factors of key value to realize the value of companies. The core of Market Value Management is to realize smooth flow of value information between companies and capital market. In a closed loop process of information transfer, looking for the key nodes of value, that is key driving factor of value, and restructuring procedure containing main business and innovating operation. In the level of strategy, establishing the total management goals containing value creation, value realization and value operation, along with value codes confirmation of different segments and different management hierarchy, and dividing strategic targets into smaller and concrete goals from vertical and horizontal view, in the mean while, designing basic business process around the extent to realization of the different goals.(3)Drawing from the core idea of mechanism design, namely, an effective mechanism realize the goal of organization through the following three objectives:the effective distribution for resources,making proper use of information and incentive compatibility. The main part of the article is based on this idea, Market Value Management in implementing the management structure of innovative thought and management procedures based on the reconstruction in order to manage goal-oriented market value, designing mechanism from three main procedures containing value creation, value realization and value operation. In different links of value information transfer, the article provides the optimal paths and methods for the realization of company value.