Roman Zavorotniy

Kyiv National Economic University named after Vadym Hetman

Ukraine

roman.zavorotniy@yandex.ua

Cash value added as an indicator of efficiency of issuer’s development in crisis economic environment

ABSTRACT.  Article is devoted to problems of valuation of development of the Ukrainian is- suers by using of a cash value added (CVA), on a base of Boston Consulting Group’s approach.

Urgency of problems defines a main goal of the presented research - the analysis of features of CVA formation, an assessment of influence of certain elements on dynam- ics of this indicator, also the analysis of CVA dynamics as the generalized indicator of the enterprise’s economic growth. The author describes structure and dynamics of bal- ance of the Ukrainian oil market; he shows the dependence of a dynamics of earnings before interest (EBI as a large element of CVA) on the oil refineries’ commitment. In article it also characterizes effective management of the average cost of the corporate capital according to criterion of economy on financial expenses; the second criterion is maximizing the sum of CVA. The author offers a technique of an application of market rate of WACC in CVA indicator (it allows to estimate efficiency of financial management on the value-based management approach).

Received: June, 2014

1st Revision: September, 2014

Accepted: October, 2014

DOI: 10.14254/2071-8330.2014/7-3/4

JEL Classification: C10, F43, G32

Keywords: : cash value added, weighted average cost of capital, earnings before interest, brutto-investments, oil refinery.