Assessing the Impact of Value-Based Management: When Does It Create Shareholder Value? A Literature Review

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bachelor_Määttä_Matias_2025.pdf (356.28 KB)

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School of Business | Bachelor's thesis
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Date

2025

Department

Laskentatoimen laitos

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Mcode

Degree programme

Laskentatoimi

Language

en

Pages

20

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Abstract

This thesis examines whether value-based management (VBM) creates share-holder value and under what conditions it is effective. While widely used in corpo-rate practice, the results of VBM adoption remain mixed in academic literature. A systematic literature review was conducted, covering both the performance impli-cations of VBM and the contingency factors that influence its success. The findings indicate that factors such as comprehensive implementation, agency risks, CFO emphasis, industry characteristics, and institutional context significantly shape VBM outcomes. The thesis concludes that VBM is not a universally effective framework but requires contextual alignment. This contributes to a more nuanced understanding of strategic management systems and provides practical insights for implementation.

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Thesis advisor

Falk, Kerstin

Keywords

value-based management, shareholder value, management accounting

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https://urn.fi/URN:NBN:fi:aalto-202506225194

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[kand] Kauppakorkeakoulu / BIZ (Open Access)