Value based management has nowadays become the most popular way of management which is highly used not only by the leading american enterprises but by the european capital companies as well. also in Poland as it can be cleared observed the still rising number of companies has made successful attempts at initiating the new philosophy and integrated way of management in practical terms. The prime objective of VBM is maximization of company’s value for its owners as well as other groups of interest, such as clients, employees. suppliers, lenders, local communities and society as a whole.
This enterprise management method was created in the face of social and development changes in the world economy at the end of the 20th century. The factors that contributed to its development are: growth and expansion of private capital, IT revolution and globalization of markets. The widespread use of this method of management has totally changed the way companies operate around the world.
Theoretical bases for the idea of VBM have been laid by such renown economists as, to name only a few, Markowitz, Modigliani, Miller, Sharp and Fama. In Poland, from the late nineties of the last century until today dozens of scientific papers focused upon this area of research have been written by many various scientists. Among them the academics from the Department of Small Business of SGH, who were the first to introduce theat issue to the Polish audience, have taken the lead.
The reform of pension systems and the development of pension and investment funds, which quickly became the most important group of investors on the capital markets, were also very important for the development of this concept. Private individuals have begun to look for alternative sources of free cash, in connection with the need to ensure future pension insurance. Fund managers are interested only in commercial law companies that achieve long-term shareholder value growth, so more and more company managers started looking for a way to manage a business that would maximize investor returns.