Enterprise Value Assessment and Creation

Author: Zhang Jialun
Publisher:
Publish Date: 2005-07-01
Features: The goal of a business is to maximize value creation. Value creation is dynamic and continuous; only by pursuing sustained value creation can a business ensure its vitality. The prerequisite for value creation is the establishment of a scientific and rational value assessment theory and methodology. Evaluating the same business at different time points can determine whether its operations are creating or consuming value. Value creation is the purpose, and value assessment is the foundation—therefore, the two are inseparable, which is the fundamental basis for the author's integrated research on both. Based on this, the author attempts to construct a preliminary analytical framework for the system of corporate value creation from a fresh perspective. For the first time, it proposes that the financial goal is to maximize value creation; it holds that value assessment and performance analysis are the foundational platforms for value creation; intellectual capital is an essential element of value creation; internal value chain optimization and external supply chain extension are the operational systems of value creation; and corporate value reporting serves as a bridge for information communication between investors and the business.