DETERMINATION OF VALUE FOR THE SHAREHOLDERS OF NON-PUBLIC COMPANIES IN THE THEORY OF VALUE-BASED MANAGEMENT

Abstract

The primary goal for a company is to increase the wealth of its shareholders (owners) by paying dividends and causing the stock price to increase. Originally, this goal is for public corporations whose shares are traded on the stock market. Purpose. ^ analyze existing approaches to measuring value for shareholders and to their applications in non-public companies with a narrow range of shareholders. Methodology. An analytical approach to the research of practical experience in interaction with shareholders of non-public companies and analyses of the theory and practice of value-based management. Results. The author has consistently proven that the existing approaches to measuring value for shareholders are intended for corporations and cannot be applied in companies whose shares are not publicly traded on a stock exchange. The author proposed the approach to measure the value for the shareholders of non-public companies on the basis of the principles of valuation activity. This article covers only a part of the research results obtained in the course of work on introducing value-based management in non-public companies Practical implications. Corporate management in non-public holding structures whose shareholders have to compare the effectiveness of different types of businesses.