Company Value Management as the Main Objective of Corporate Finance

Abstract

The article argues in favor of the theory that efficient shareholders should set the management a task to design governance practices oriented at enterprise value management and growth, and to focus corporate reporting system on revealing the key value drivers (value based management). It is also argued that non-fundamental value drivers, such as corporate governance, should be integrated into the whole system of strategic enterprise value management. In addition, the article presents the tools which help to estimate the impact of different financial and non-financial factors on the enterprise value. Finally, the article provides recommendations concerning the key steps to design an enterprise strategic value management system with the usage of presented tools.