EMPIRICAL ANALYSIS OF FIRMS’ VALUE CREATION IN THE CONTEXT OF CRISES

Abstract

In today’s highly competitive world, one of the most important business objectives for owners is to generate shareholder value and wealth. In order for an investor to know how to effectively deliver wealth growth, it is important to know the value creators of the business. A number of studies have been published in the management literature to identify the value creators of ownership. This article draws an essence from the literature reviewed, which are identified as key drivers of value creation, which are presented in the first half of the study. In the second logical part of the paper, the characteristics, causes and major crisis episodes of the 2007-2008 global financial crisis and the COVID-19 crisis are presented. In the methodological part, the panel regression model is used to analyse the 702 firms in the database. The main objective of the study is to answer the following questions: which are the most important value drivers and how the influence of these value drivers changes in the aftermath of the COVID-19 crisis.

Keywords

• company valuation
• 2007-2008 global financial crisis
• covid-19 crisis
• panel regression model