ASSESSING ACCEPTABLE AND MARGINAL VALUES OF MARKET VALUE FORMATION FACTORS IN THE VBM SYSTEM

Abstract

With increasing turbulence in the business community under war conditions, increasing risks and uncertainties, the demand has grown for effective financial management systems for Ukrainian enterprises and effective monitoring and control systems for strategic management. This makes it possible to timely detect undesirable changes in the financial situation and minimize threats to financial stability. The aim of the article is to define the target values and the limits of variation of the factors influencing the market value of the company in the VBM system. It is the methodical basis for efficient financial control of internal reserves to increase the enterprise's market value. Approaches were developed to identify the target balance sheet structure for solving this task. The normative values of the specific weight of individual component assets and liabilities in the balance sheet are used to determine the required level of liquidity, solvency, and financial stability for enterprises. These were obtained as a result of modelling the dependence of the major components of the balance sheet on absolute liquidity volumes. An approach is proposed for establishing acceptable and limiting values of market value formation factors within the value management system. It was found that the target standard and the limits of variation for the factors of the enterprise market value formation depend on the type of factor: factors in the structure of funding sources – are the same for all economic entities and depend only on the availability of absolute volumes of liquidity; the factors of business activity and efficiency – are individual for each business entity and depend on the target options of the effects of economic interaction with stakeholders established during strategic planning.

Keywords

• value-based management
• value formation factors
• Cash Value Added