Journal of Accounting and Management Information Systems (JAMIS)

Are the companies managed by values? A research on the large scale companies in Turkey

20/2007 ,  


Keywords:   Value creation, management by value, financial performance measurement.

Management by values (MBV) is a way to gauge whether or not a company is generating value for its shareholders and to measure the difference between a return on equity and the cost of capital. MBV is seen as a process of striving to achieve this target by managing the elements that create a company’s economic value, whether the elements are tangible or intangible. The purposes of the research are: (1) to determine whether or not the large-scale Turkish companies implement MBV, (2) to determine to what extent these companies employ financial accounting performance metrics of MBV, (3) to determine whether or not they collect the information for assessing the long-term financial impacts of upholding values, (4) to present suggestions concerning the successfully implementation of MBV, based on the research findings obtained. Data were collected via questionnaire and analyzed by SPSS program for the purposes of the present research. The main finding of the research shows that the values are seen by the companies as a critical component of establishing its license to operate.