The Concept and Measurement of Creating Excess Value in Listed Companies

Jarosław Kaczmarek


The basic topic of considerations in this article is an assessment of the creation of value for owners – in an expected and sufficient manner. It indicates that the adopted approach is based on the concept of Expectations Based Management (EBM).

The author discusses the manner of developing measures for the needs of the EBM concept and assessing their usefulness in the conditions of the capital market in Poland. In particular, the article focuses on the manner of extending the area of the perception of market value added by introducing the concept of excess value. In the dimension of theoretical and methodological considerations, the author refers to the relations between value added creation measures (economic and market value added) and a company’s market value (market capitalisation). The utilitarian dimension is related to the results of research of creating value by publicly traded companies.

The analysis comprises 20 listed companies (the sectors: energy, chemical industry, fuel and raw materials), whose shares are listed on the Warsaw Stock Exchange. These are the main creators and destroyers of value added. The test period covered the years 2008–2013.

The article proves three research hypotheses, and the general conclusion is that excess market value added provides a more reliable description of capital market changes (companies market capitalisation) as classic market value added, taking into account owners (shareholders) expectations.



corporate value; creation of value; excess value; economic and market value added; Value Based Management

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Print ISSN: 1392-2785
Online ISSN: 2029-5839