Value-based management

The importance of this type of management for business

Abstract

In order to adapt to the current competitiveness and the new demands of the market, the companies are making several changes in order to follow the new world economic scenario that is being presented. From this perspective, this article has the purpose of presenting the importance of Value Based Management (GBV), proposing an approach that involves the management of the company as a whole, based on management processes ranging from the development of strategies, to the definition of performance indicators. Throughout this article it is possible to identify the highest goal of Value Based Management, the maximization of wealth to its shareholders. The main indicators of economic performance of this type of management are also presented: EVA, MVA and Cost of Capital. The present article deals with a descriptive research, carried out through a bibliographical survey, through books and scientific articles published between the years of 1997 and 2016, through a qualitative approach. Regarding the proposed research problem that questions the importance of GBV for companies, it was verified that this type of management goes beyond concepts referring to conventional measures of performance such as profit, which prove to be f lawed, focusing on its greater interest that is the maximization of shareholder wealth.