Detail publikace

Dependence of Economic Value Added on the Market Share

KONEČNÝ, Z.

Originální název

Dependence of Economic Value Added on the Market Share

Typ

článek ve sborníku ve WoS nebo Scopus

Jazyk

angličtina

Originální abstrakt

This article is focused on the relations between market share of analyzed companies and the reached economic value added (EVA), which is one of the best indicators to measure the corporate performance. There was selected the Czech market with motor vehicles production, on which are acting about 100 - 150 companies, whereas the sample comprises 45 of them. There were analyzed situations in three different periods - in 2003, before entrance of Czech Republic into the European Union, in 2007, before the world financial and economic crisis, and in 2008, after the start of this crisis. All the data were gotten from the financial reports of selected companies and from the analytical materials published by the Czech Ministry of Industry and Trade. The market share of the companies was calculated as the proportion of the sales, reached by the company to the sales, reached by the whole market. The economic value added was calculated with use of the methodics by the Czech Ministry of Industry and Trade and there was considered the relative EVA in form of spread. There was found out, whether the value of spread is caused more by the return on equity or by the alternate cost of equity, which are decomposed in the so called riskless rate and individual risk rewards. Main findings of this research are, that before the entrance of Czech Republic into the European Union were highest values of spread reached in companies with a low market share (under 1%), which was caused by a high return on equity. In 2007, when the Czech economy was reaching a peak, had none of analyzed Czech companies their market share higher than 1%, because of the strong competition from other european countries, however almost all of the analyzed companies reached a positive spread. And finally, after the start of the world financial and economic crisis reached the companies with higher market share higher spread, because of higher return on equity.

Klíčová slova

alternate cost of equity, economic value added, market share, return on equity, riskless rate, risk rewards

Autoři

KONEČNÝ, Z.

Rok RIV

2012

Vydáno

8. 3. 2012

Nakladatel

MZLU Brno

Místo

Brno

ISBN

978-80-87106-54-9

Kniha

Enterprise and Competitive Environment 2012

Číslo edice

1

Strany od

31

Strany do

31

Strany počet

1

BibTex

@inproceedings{BUT90113,
  author="Zdeněk {Konečný}",
  title="Dependence of Economic Value Added on the Market Share",
  booktitle="Enterprise and Competitive Environment 2012",
  year="2012",
  number="1",
  pages="31--31",
  publisher="MZLU Brno",
  address="Brno",
  isbn="978-80-87106-54-9"
}