A Financial Perspective on Value Creation

• Main Author: Drăghici Dalis Maria
• Format: Article
• Language: English
• Published: Ovidius University Press 2018-01-01
• Series: Ovidius University Annals: Economic Sciences Series
• Subjects: return on invested capital; the conservation of value; risk diversification
• Online Access: http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2019/02/10-3.pdf

The recent financial crisis, together with the economic bubbles and cycles of explosions have all proved us that creating, evaluating and maintaining value represent not only a competitive advantage, but also a requirement in uncertain situations. And when also the interests are not intercorrelated within the groups, the only way to effectively employ the available resources and to help the economy is by seeking to achieve long lasting value development. The principles used in establishing the value, followed by measurement techniques have stood the test of time. In a world where short-termism still remains a topic open to debates, it is mandatory to be able not to think of creating value for shareholders as a path for enlarging short-term incomes. Otherwise, confusing these fundamental elements can lead to an intensification of risk with regards to shareholder’s interest and company’s value.