Economic Themes (2012) 50 (1) 6, 81-100
Predrag Stančić, Milan Čupić, Vladimir Stančić
Abstract: Companies often define the general business objective as the shareholder value maximization. For such an objective appropriate measures are those that take in account the amount, dynamics and risk of expected cash flows of the company. The aim of this paper is to determine the place and role of performance measures in the efforts of managers to maximize shareholder value. The performance measures are, in that regard, understood not only as criteria for performance evaluation, but also as instruments to guide and motivate managers and employees in the company.
Keywords: shareholder value; return on invested capital; growth rate; performance measures; performance measurement system
CHOICE OF PERFORMANCE MEASUREMENT SYSTEM IN THE SHAREHOLDER VALUE ORIENTED COMPANY
Predrag Stančić, Milan Čupić, Vladimir Stančić
Abstract: Companies often define the general business objective as the shareholder value maximization. For such an objective appropriate measures are those that take in account the amount, dynamics and risk of expected cash flows of the company. The aim of this paper is to determine the place and role of performance measures in the efforts of managers to maximize shareholder value. The performance measures are, in that regard, understood not only as criteria for performance evaluation, but also as instruments to guide and motivate managers and employees in the company.
Keywords: shareholder value; return on invested capital; growth rate; performance measures; performance measurement system
