Corporate value creation process management (in English)
- Credits: 10
- Ending: Examination
- Range: 16sP
- Semester: winter
- Year: 2
- Faculty of Business Management
Teachers
Included in study programs
Teaching results
Knowledge:
• Research on changes in the fundamental parameters of managerial governance and assess their impact through complex linkages on innovation and future company value creation.
Competence:
• identify value-creating business processes using analytical techniques,
• the ability to identify, quantify and present research results, on about the impact and influence of changes in value-creating processes on the current and future value of the company, individually and comprehensively,
• the ability to predict and create scenarios for the future duration of the business based on historically achieved economic results, changes in value-creating parameters, taking into account anticipated changes in the macro and industry environment,
• actively contribute to the expansion of the knowledge base on value-creating business processes in the context of scientific and technological progress and innovation.
Skill:
• formulate new strategies and critically assess the achievability of individual scenarios in the business value creation based on changes in fundamental value-creating parameters,
• critically analyse current concepts, theories and trends of development in the quantification of value-creating parameters of business,
• identify points of failure in the creation of the current and future business value,
• apply the results of own scientific activity in quantification of value-creating processes of the company by using different methods and approaches,
• the ability to design and implement new research and work procedures for identifying and quantifying the importance and impact of human capital on the current and future business value creation,
• ability to quantify the economic impact and influence of company synergies to the value creation.
Indicative content
1. Identification of value-creating business processes.
2. Key parameters analysis of corporate value creation.
3. Quantification of business value creation by selected valuation methods.
4. Assessment of the possibility of corporate synergies and their impact on the future growth of enterprise value.
5. Identification and quantification of intangible drivers of enterprise value growth.
Support literature
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3. ALEXANDER, Jack. Financial planning & analysis and performance management. 1st Edition. New York City : Wiley & Sons, 2018. 640 s. ISBN 978-1119-49-148-4.
4. ALTUVE GODOY, Jose German. Cost of capital of the long term. Entailment with the structure of capital, individual and weighed cost. In: ACTUALIDAD CONTABLE FACES, 2007, vol. 10, no. 14, pp. 5-12. ISSN 1316-8533
5. BALLWIESER, Wolfgang – Hachmeister, Dirk. Unternehmensbewertung – Prozess, Methoden und Probleme. 5. Auflage. Stuttgart : Schäffer Peschel, 2016. 254 s. ISBN 978-3-7910-3554-3.
6. BARTH, Mary E. – KONCHITCHKI, Yaniv – LANDSMAN, Wayne R. Cost of capital and earnings transparency. In: JOURNAL OF ACCOUNTING & ECONOMICS, 2013, vol. 55, no. 2-3, pp. 206-224. ISSN 0165-4101
7. BERTOMEU, Jeremy – BEYER, Anne – DYE, Ronald A. Capital Structure, Cost of Capital, and Voluntary Disclosures. In: ACCOUNTING REVIEW 2011, vol. 86, no. 3, pp. 857-886. ISSN 0001-4826
8. BLANCO, Belen – GARCIA LARA, Juan M. – TRIBO , Josep A. Segment Disclosure and Cost of Capital. In: JOURNAL OF BUSINESS FINANCE & ACCOUNTING, vol. 42, no. 3-4, pp. 367-411. ISSN 0306-686X
9. BODIE, Zvi - KANE, Alex - MARCUS, Alan. Essentials of Investments. 10th Edition. New York City: McGraw-Hill Education, 2018. 784 s. ISBN 978-00-778-3542-2.
10. BRYL, Lukasz – FIJALKOWSKA, Justyna – PRYSINSKI, Lukasz. Intellectual Capital Disclosure and Cost of Capital: A Systematic Literature Review. In: 10th European Conference on Intangibles and Intellectual Capital (ECIIC), Univ Chieti Pescara, Chieti, ITALY, MAY 23-24, 2019, pp. 32-41. ISBN 978-1-912764-19-8
11. FRANK, Murray Z. – SHEN, Tao. Investment and the weighted average cost of capital. In: JOURNAL OF FINANCIAL ECONOMICS, 2016, vol. 119, no. 2, pp. 300-315. ISSN 0304-405X
12. GAVLAKOVA, Petra. Main Aspects of the Cost of Capital. In: AD ALTA-JOURNAL OF INTERDISCIPLINARY RESEARCH, 2013, vol. 3, no. 2, pp. 20-22. ISSN 1804-7890
13. IVSC. International Valuation Standards. London : International Valuation Standards Council, 2019. ISBN 978-0-9931513-3-3-0.3
14. JAGANNATHAN, Ravi – LIBERTI , Jose – LIU, Binying – MEIER, Iwan. A Firm's Cost of Capital. In: Annual Review of Financial Economics 2017, vol. 9, pp. 259-282. ISSN 1941-1367
15. KANG, Yongbo – WANG, Susheng – PENG, Ke – YU, Yongrui – WANG, Junbo. The Impact of Corporate Venture Capital (CVC) Information Disclosure on Corporate Value. In: Proceedings of the 2016 2nd International Conference on Economics, Management Engineering and Education Technology (ICEMEET 2016). 2nd International Conference on Economics, Management Engineering and Education Technology (ICEMEET), Sanya, PEOPLES R CHINA, NOV 12-13, 2016, vol. 87, pp. 818-822. ISBN 978-94-6252-288-6
16. LAROCQUE, Stephannie – LAWRENCE, Alastair – VEENSTRA, Kevin. Managers' Cost of Equity Capital Estimates: Empirical Evidence. In: JOURNAL OF ACCOUNTING AUDITING AND FINANCE, 2018, vol. 33, no.3, pp. 382-401. ISSN 0148-558X
17. LAWRENCE C., Karlson. Corporate Value Creation: An Operations Framework for Nonfinancial Managers. New York City : Wiley & Sons, 2015. 656 s. ISBN 978-11-1899-752-9.
18. MCKINSEY & COMPANY - KOLLER, Tim - GOEDHART, Marc - WESSELS, David. Valuation: Measuring and Managing the Value of Companies. 7th edition. New York City : Wiley & Sons, 2020. 896 s. ISBN 978-11-1961-088-5.
19. MCKINSEY & COMPANY - KOLLER, Tim - GOEDHART, Marc - WESSELS, David - CICHELLO, Michael. Valuation: workbook step – by-step excercises and tests to help you master valuation. 6th edition. New York City : Wiley & Sons, 2015. 256 s. ISBN 978-11-1887-387-8.
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21. MICIUŁA, Ireneusz – KADŁUBEK Marta – STEPIEN Paweł. Modern Methods of Business Valuation—Case Study and New Concepts. In: Sustainability 2020, vol. 12, no. 2699, pp. 1-22, doi:10.3390/su12072699
22. MOHAMMADI, Ali and TAHERKHANI, Parastoo. Organizational capital, intellectual capital and cost stickiness evidence from Iran. In: JOURNAL OF INTELLECTUAL CAPITAL, 2017, vol. 18, no. 3. ISSN 1469-1930
23. MONKS A.G., Robert – LAJOUX R., Alexandra. Corporate Valuation for Portfolio Investment. New York City: Wiley & Sons, 2015. 556 s. ISBN 978-0-470-88074-6.
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Syllabus
1. Identification of value-creating business processes and their impact on the company's financial statements, in relation to the value creation of the company. 2. Key parameters analysis of corporate value creation, quantification of their individual and complex impact on value. Creation of scenarios for the development of business value when one or more parameters change. Assessment of the significance of changes, risk and mutual synergy effect. 3. Quantification of business value creation by selected valuation methods depending on the identified phase of the life cycle, business sector and legislative specifics related to the enterprise activity (e.g. transformation law) 4. Assessment of the possibility of corporate synergies and their impact on the future growth of enterprise value, including its quantification, under differentiated assumptions of their duration. 5. Identification and quantification of intangible drivers of enterprise value growth, intangible assets reported in the financial statements and other sources of growth not yet captured in the financial statements (human capital). Valuation methods, techniques, strategies, including real options.
Requirements to complete the course
10 % continuous performance of assigned tasks, 30 % continuous written work (scientific essay), 60 % oral examination
Student workload
260 h - participation in consultations 16 h, preparation for consultations 32 h, processing of continuous assignments 16 h, processing of scientific state 90 h, preparation for the exam 106 h)
Language whose command is required to complete the course
English
Date of approval: 09.02.2023
Date of the latest change: 14.05.2022