Value-Based Management at Dax-Listed Companies
Bachelor Thesis from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, University of Applied Sciences Essen, language: English, abstract: 1.3Scope of Work The thesis is divided into two main parts. In the first part, the theoretical background of value-based management is explained in detail. First, the reasons are pointed out why traditional key figures are not suitable to measure the corporate success and as a result, why value-based concepts are used. Subsequently, the methodologies for the determination of a company's cost of capital and for corporate valuation are presented in detail. The consideration of both the cost for equity capital and debt capital add the element of risk to determine the actual performance. This knowledge is the basis for multi-period value-based planning. Secondly, the most common approaches based on this theoretical background are introduced and elaborated. They integrate the key target of increasing the corporate value sustainably in the long term as a business philosophy which creates a holistic framework of action for the diverse tasks within a company. The second part brings to light, which companies of the thirty companies listed in the DAX are reporting a value-based management approach and further, which approaches these companies have implemented. As the parameters on which the calculation is based differ and are defined in different ways by the companies analyzed, these figures are surveyed. Even though not all companies which are using a value-based approach do report information about it in their annual reports or in other publications, especially the annual reports give information about the extent of spread. Literature is taken into account up to January 1, 2011. The two last annual reports including IFRS financial statements are considered for the analysis which were published by all companies listed in the DAX at that date.
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accounting data adjusted Allianz Arbeitskreis Internes Rechnungswesen average balance sheet BASF Bayer Britzelmaier business areas business units calculated capital employed capital market capital percentage CAPM CFROI Coenenberg company’s concepts of value-based Consequentially conversions corporate value cost of capital cost of debt cost of equity Daimler DAX-listed companies debt capital depreciation Deutsche Börse Deutsche Post discounted E.ON EBIT Economic Value Added entity method EVA concept fixed assets Fresenius Medical Fresenius Medical Care Geschäftsbericht 2009 gross cash flow Hagenloch HeidelbergCement Henkel implemented included increasing the corporate Infineon investors key measurements key performance measurement liabilities long-term Lufthansa Lufthansa 2010 managing board market portfolio market values München Munich non-interest-bearing NOPAT operating assets operating profit period pre-tax profit taxes pure rate Rechnungswesen der Schmalenbach-Gesellschaft risk-free interest rate ROCE Schmalenbach-Gesellschaft 2010 shareholders Siemens ThyssenKrupp value of Beta Value-oriented key figures variable compensation Volkswagen Volkswagen 2009a WACC Weber